Is this the reflation?

A couple of weeks ago I joked to a friend after the Dow Jones had managed to reverse early losses & a possible breakdown, to close up 181 points "Here comes the reflation!" Little did I know that a fortnight later we would be 11% higher in Dow & S&P, 15% in the Dax, 11% in crude oil, 12% silver, 16% copper and 37% in Xstrata shares ! Gold is the laggard, only up a paltry 5%! Having said that Gold has built higher value and moved its longest line up so now this rally has a target of $988 moved up from $964, as long as $945/946 support holds. Stops kept at $943. happy trading.....
PS anyone know what happened on July 13th to change the world?

Gold support & resistance

Short term UPprofile from 17 July - support 948.5 , 943 (stop on long) , 937
resistance 955 , 958.7 (fib 61.8%), 964.5 (target for short move)
Gold still inverse steps with dollar and rises with stocks - slightly perturbing but reality nonetheless at the moment - as my Gold Fund manager friend says in his July update:
"Equities rally, yen weakens, dollar weakens, commodities and the precious metals sector rise. Conversely the opposite is true. We have a new theory for this, that economic classes around the world could embrace at the exclusivity of all others– MIMO theory. Money In Money Out – like the best theories postulated keeping it simple works."

Sterling Gold creeping higher £578

When the Dollar gold price is moving UP like now ($950) the sterling price (£POG) can go sideways, lower or higher depending on the exchange rate. Now that may seem obvious but
it makes a big difference if you are a sterling based investor. I wrote an article for the Technical Analyst magazine on this topic recently, discussing the recent trends in Gold and the GBP/USD exchange rate. In the short term the timing is crucial, but the longer the time horizon the less important the timing issue. £POG has underperformed $POG over 6 months ( -6.9% vs +9.5%) but over 10 years its +260% vs +269%!
Currently most of the Gold moves are dollar inverse moves, so the Sterling price is less volatile than the $Gold price, but all my recent analysis holds true- the technicals have turned bullish and I believe the correction low is in, with the price rally beginning that targets the old high near £700 .

the objective analyser

PS I would like to display more charts but I am having trouble with corrupt files ? Any ideas?

After the pain, comes the gain

Well that's the idea, "You've got to be init to winit", "no gain without pain", "risk it for the biscuit" -
all phrases designed to be helpful for the risk taker. So after the decline in gold from 940 to 905 comes the rally from 905 to 940 - so where does that leave us? Still long and looking for the next leg up to take out the 1000 dollar highs. I said before as long as 900 holds the market remains bullish in the medium to long term, targeting $1137 and that still holds true. Sterling gold has been very quiet between 560 and 570 but has developed some bullish divergences in RSI readings and MACD indicators that suggest the consolidation phase is ending. £700 is my target there. The end of 2009 is my timeframe, so now is the time to buy - "speculate to accumulate" as the City boys are wont to say.
Good luck!

Gold update

Gold is still in my buy zone $920 area, having been up to $940s a couple of times in the last week.
It feels as if some Gold bulls are losing heart, but the technical picture hasn't changed in the longer term. The only caveat to that is the April/May rally has lost its imbalance and is now neutral centered around $930. Price needs to get above $955 to turn shorter term profiles bullish again.
Sterling Gold price has started to slowly rise and looks good technically, I will have a chart on that tomorrow. As you know I have been pushing buying Gold against sterling for a while now.
happy trading ......