Is Gold Rolling Over?
March 12th, 2007 by Grant in: Investing, Stock ThoughtsIt seems my GLD gold play is rather directionless right now, and the low volume in the ETF itself is not helping. I have a feeling that people are trying to get a sense of direction when it comes to precious metals in particular, but gold especially due to the public rally.
I’m only down about $65 on my gold play, and the psychological support of $650 per ounce has yet to falter. The fact that crude oil is slipping is cutting away at economic support for gold as well.
However! While crude may be falling now, we have yet to see the oil industry go down for Spring maintenance, at which point they will convert from refining heating oil to refining gasoline in preparation for peak driving season. So at this juncture, the price of crude doesn’t really worry me.
What does worry me is that the once frenzied rally for Gold is starting to diminish. Additionally, while I don’t have a lot invested in gold, I do want to preserve what capital I can, so I’m wondering if I should cut back my relatively small position or let it ride. Again, the support of $650 per ounce is still intact, and I believe until this support is broken, gold is still healthy, although it’s health is diminishing…
As they say, the harder they run…
Leave comments
Subscribe to Comments
Loading ...
March 12th, 2007 at 9:59 pm
I like your thoughts. I halved my gold position today. Volume, open interest (futures), and price action have shown me this bounce may be short lived. I am still a believer in the fundamentals of gold, but one of the maxims I try and hold to is that if price doesn’t follow my view of the fundamentals than maybe I’m wrong and I’ll move on to trade another day…