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Don’t Be Fooled By The Gold Price

Sprout Money's picture




 

gold

American investors might be extremely disappointed with the recent performance of the gold price as the yellow metal is once again trading below $1200/oz. This causes a lot of people to frown their eyebrows but the reality is that the gold price expressed in other currencies is actually showing signs of a break-out.

Indeed, when looking at the gold price in other currencies, the charts look extremely different. Let’s back this up with four charts of the yellow metal, expressed in different currencies. And indeed, all four charts (with the gold price expressed in respectively Canadian Dollar, Euro, Japanese Yen and Russian Ruble) show a considerable increase in the gold price.

Gold CAD

Gold EUR

Gold Yen

Gold Ruble

Source

If we would consolidate this view in a chart, a technical break-out pattern becomes clearly visible.

Gold Breakout

Source

The gold price has moved up again this week ahead of Yellen’s bi-annual testimony before the Congress and the fact that the Greeks are accusing their government of treason. Just as we expected in an earlier column, a new deal has been reached in the final hours before the deadline, and just as we expected, Tsipras and Varoufakis returned to Athens claiming the Greeks were victorious over the evil, naughty Troika.

This will also undermine the position of the anti-austerity parties and leaders as a sudden U-turn is only very rarely appreciated. Moreover, it now does sound like Greece was the demanding party for another extension even though it categorically refused to extend the program.

So what’s next for the gold price in US Dollar? Looking at the Money Flow index parameter of gold, the index has reached its lowest level in several months and the last time it reached this level was right before it ran from $1190/oz to $1300/oz.

Gold Price

Source

There are no certain things in life, but it sure does look like the gold price is bottoming out and preparing itself for another leg upwards as the last time we saw the Money Flow Index reach this level, the price of the precious metal came back to life again. Additionally, as it doesn’t look like things are calming down on the macro-economic level (the Ukrainian problems still haven’t been solved and the new Greek deal is merely an extension and not a permanent solution), investors will continue to pick up gold as a safe haven. The fundamentals haven’t changed and the recent softening in the gold price might merely be building a platform for the next break out.

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Sun, 03/01/2015 - 00:38 | 5841658 cashcmac
cashcmac's picture

nobody should get caught with their pants down..get long physical at these

lowend prices..when the music stops while you know how musical chairs goes..

Sat, 02/28/2015 - 22:49 | 5841394 somecallmetimmah
somecallmetimmah's picture

Apologies for what gold did in your mouth last night.
Most unfortunate.

Sat, 02/28/2015 - 22:48 | 5841390 TradingTroll
TradingTroll's picture

TYLER!! WTF?!!

If you expect me to click through the barrage of ads to get to your site, then dont post crap. As the other ZHer pointed out, gold on 2/28/15 (the date stamp of this story) is not as follows

American investors might be extremely disappointed with the recent performance of the gold price as the yellow metal is once again trading below $1200/oz.

 

 

Even the charts the writer posted doesnt confirm gold is below $1200.

Uhm, you are losing me Tyler...



Sat, 02/28/2015 - 22:38 | 5841369 lasvegaspersona
lasvegaspersona's picture

What crap. Gold is priced in dollars and dollars are up against all other currencies...therfore gold is up in all other currencies.

I'm never unhappy. If gold is up my stash is up, if gold is down my hedge is up....perfection every day!

Sat, 02/28/2015 - 22:04 | 5841278 mjk0259
mjk0259's picture

Sprott gold - helping you lose money every year.

Sun, 03/01/2015 - 01:18 | 5841700 Tall Tom
Tall Tom's picture

US Dollars are CURRENCY. The US Dollar is not money in any classical sense.

 

Money is not an end but a means of buying goods and services. Putting money out for the generation of more money is an evil unto itself. The formal value of money is the face value. Yet usury allows this face value to fluctuate, and hence the value of money can be diminished, thereby robbing the person who has purchased the money for use. Money stands alone as a non-vendible substance which is degraded from its natural end by selling. ~ St. Thomas Aquinas

 

The problem is that you have rejected God Almighty and are IMMORAL and SUPPORT a CORRUPT SYSTEM as you are corrupt..

 

As a result you shall reap the evil which you have sown as Hellfire will rain down upon you and your ilk...

 

Enjoy your upcoming lack and your famine in this like before you experience your eternal damnation.

 

Your children's stomachs will growl empty as they wither away, suffering from hunger and malnutrition.

 

The curse can be stopped if the Nation, once dedicated to God Almighty, repents from her sin and turns away from wickedness.

 

Otherwise the curse, spoken by Congress upon this Nation, through haughtiness and arrogance, shall be realized. And none are more deserving.

 

So I pray that Father God hardens the leader's hearts to bring this curse upon the wicked in Christ Jesus' name.

 

Yes Judgment Day approaches and the final Day of Reckoning shall manifest upon you.

 

The words which you believe justify you will work toward your Eternal Damnation.

 

The Harbinger shall manifest. You are running out of time.

 

You shall remember my words and regret your fail to heed them come September.

 

 

Sat, 02/28/2015 - 22:16 | 5841314 FieldingMellish
FieldingMellish's picture

Sprout, not Sprott.

Sat, 02/28/2015 - 20:30 | 5841022 magnumpk
magnumpk's picture

If you buy physical gold to hold, and not as a trade, there really isn't any reason to be disappointed that the price is relatively low.  You simply continue to accumulate until you have an amount you deem sufficient to protect your purchasing power in the future.  

Sat, 02/28/2015 - 20:22 | 5840991 topspinslicer
topspinslicer's picture

What's in your wallet? (graded double eagles are a sight to behold)

Sat, 02/28/2015 - 20:21 | 5840988 neidermeyer
neidermeyer's picture

UH .. Gold in USD is at $1213.70 ,, not sub $1200...

Sat, 02/28/2015 - 21:57 | 5841243 El Oregonian
El Oregonian's picture

In a world where everything is illusionary and filled with propaganda and lies, take hold of reality's tail and fill thee pockets with PM's at these excellent discounted prices.

Onward past the fog!

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