4 replies to this topic

[mss]

Appears that the outlook for the XAU & HUI is very dim for awhile. We may now have a chart pattern that will give some clue as to when the decline will change.



Comments welcome, mss
"cat"

[PorkLoin]

Hiya, Choo-Choo man. As before, that Rate could easily go back to the 3.5 area (more exactly the 3.75 area? -- the level of the "breakout") and from the high point in late 2003 it could well be down/up/down/up and now going down again, just as is possible for the XAU and HUI. The US Dollar has messed with the minds of both bulls and bears lately, but I think the big correction upwards in the Dollar Index continues unabated -- bad for gold. Inflation? Bonds don't seem to be saying "yes," there. Commercial traders are still short like big dogs in gold futures. Bullion to $450? Well heck yes -- probably, I say, if not lower. IMO it's more than a 50% chance, for now, that we'll go down to the summer lows and then see what happens. Best, Doug

[mss]

Here is the daily look at the same data with BOP trends below which tells me more than any thing else.



mss

[PorkLoin]

Wow -- Last week I officially on precious metal stocks, and now my inner says "See you at 80/165 XAU/HUI." If we get there, just might be something that :santa: brings. Doug

[butchwax]

MSS and Doug. great analysis on the XAU/HUI. Thanks for sharing. David..