Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Richnorth who wrote (45816)	12/9/1999 9:36:00 AM
From: Giraffe	Read Replies (1) \| Respond to of 117011

It's encouraging that gold and gold mining stocks relinquished only a small portion of yesterday's gain. Had yesterday's advance been primarily due to short covering, today's retracement could have been as much as yesterday's gain. Given the recent failed rally attempt and subsequent consolidation at a 'higher low' than September's low, short covering was less of a probability. In previous commentary over the past several weeks, several supportive reasons for a year-end gold rally were cited: A recovering Asian economy (Asians are primary consumers of gold jewelry.) Declining Dow Utilities (Utilities and gold move in opposite directions and utilities are plummeting.) Rising commodities prices (Gold is the last commodity to respond to rising demand.) An historic spread between oil and gold. (To close the spread, oil must fall appreciably and/or gold must rise.) From a technical perspective, this graph of an XAU (gold index) oscillator could be any one of a number of short-term strength indicators. This particular measure of velocity crossed above the zero line despite today's retracement. Yesterday's low has not been retested and today's price range was contained within the upper half of yesterday's price range. These are technical signs of renewed buying interest ruling out short covering. Collectively, fundamentals and technicals are coming together to support a decent rally between now and year end. Hopefully our resolve won't be tested any further before we can safely don the rally caps. S&P gold futures look solid into the close and primary XAU component Barrick Gold is up an eighth with the XAU down slightly. buysignals.com from Wednesday