Tuesday, September 09, 2008

Gold Double Bottom?

Is gold making a double bottom today?

Gold today:











US dollar today:











The US dollar may have finished going to the upside. If the dollar starts to lose value, then people would want more of them for the same weight of gold, not that the US dollar has to loose value for gold to go up in US dollar prices.

2 comments:

Colin said...

Not so sure... There are some very big players out there determined to make sure the US Dollar remains "strong".

As Keynes said "The market can stay irrational longer than you can stay solvent."

Having said that, if they keep selling, I'll just keep topping up the N% of my portfolio allocated to gold while it's weak.

Anonymous said...

>Not so sure... There are some very big players out there determined to make sure the US Dollar remains "strong".

>As Keynes said "The market can stay irrational longer than you can stay solvent."

I agree with both points. Good reasons not to be on margin.

Bob