Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Parabolic Rally on Monthly Chart Flashes Warning to Gold Bulls!

Commodities / Gold & Silver Jan 29, 2008 - 08:40 PM GMT

By: Ned_W_Schmidt

Commodities Best Financial Markets Analysis ArticlePleased to announce that votes are in. Ineptness Award for first century of Federal Reserve's existence goes to Bailout Bernanke and his Buckaroos. Last week's interest rate cut cinched it for them. Did the FOMC cut U.S. interest rates because of falling global financial markets or was it pure politics? Reports suggest that FOMC was not even aware of Societe Generale's selling of portfolio problems.


Was the fix in, as they say? To answer these questions, think about the day on which they acted. For you see, Tuesday, day of the rate cut, was third Tuesday of January. On third Tuesday in January 2009, exactly a year away, U.S. will inaugurate a new President. With Congress involved in massive vote buying scheme, sending Treasury checks out in election year, Bernanke's Buckaroos had to help out. Think they want to lose their jobs next year? This rate cut was pure politics, the FOMC had received their marching orders previously. No wonder price of Gold has moved to a record high.

Cannot be a person left in world that does not now understand the need for Gold in a portfolio when politics might be determining U.S. monetary policy. Long-term target of US$1,466 will likely continue to rise given these Federal Reserve policies. While government are source of long-term bullishness, we can not ignore market of today. This week's chart is of monthly average price of $Gold.

Parabolic nature of the recent rise is suggested by the curve overlaid on the graph. These curves are unnatural, and should not be ignored. Failure of this pattern is usually inevitable and painful. Suggest investors review chart of AAPL to understand the ramifications of such a curve. $Gold is extremely over bought. It has been pushed higher by speculative and leveraged momentum buyers. Investors in Gold should hold their positions, but avoid buying at this time and price juncture.

By Ned W Schmidt CFA, CEBS

Copyright © 2008 Ned W. Schmidt - All Rights Reserved

GOLD THOUGHTS are from Ned W. Schmidt,CFA,CEBS, publisher of The Value View Gold Report , monthly, and Trading Thoughts , weekly. For a subscription go to http://home.att.net/~nwschmidt/Order_Gold_EMonthlyTT.html

Ned W Schmidt Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in