Gold Monitoring Thread £ GBP only

[HerefordBullyun]

People talk about a V or U or L shaped recovery. I actually believe it's a K shaped one. Those who hold PMs bitcoin mining stocks and property mortgage free will be in the ones in the recovery of the stick where's those who don't will be down the swannie on other impoverished stick. The days of wiermarcht taught us everything we know.

[HerefordBullyun]

https://www.zerohedge.com/markets/has-gold-gotten-too-expensive

[dicker]

Gold has been trading in a channel for the last three of weeks as far as I can see.  No idea what is next in the short term.  
 

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[MancunianStacker]

BOE wrote to all the retail banks on Monday I believe to see if they’d be “able to cope” if negative interest rates were applied. If that’s not a sign for cash soon to be exiting savings plans and possibly into gold, I don’t know what is. Also to avoid means testing to claim other benefits!! 

[272]

34 minutes ago, MancunianStacker said:

BOE wrote to all the retail banks on Monday I believe to see if they’d be “able to cope” if negative interest rates were applied. If that’s not a sign for cash soon to be exiting savings plans and possibly into gold, I don’t know what is. Also to avoid means testing to claim other benefits!! 

Yeah they've got until 12th November to respond. I think Natwest have already responded and said the economy isnt ready for that.

[Martlet]

1 hour ago, MancunianStacker said:

BOE wrote to all the retail banks on Monday I believe to see if they’d be “able to cope” if negative interest rates were applied. If that’s not a sign for cash soon to be exiting savings plans and possibly into gold, I don’t know what is. Also to avoid means testing to claim other benefits!! 

I read it as due diligence.  The banks systems may not be ready for neg rates, nor their balance sheets.  They haven't done much in Japan, EU or Switzerland, no reason to expect a change in UK, except to reduce value of £ (which is probably main reason for EU persisting with the policy).  I recall the deputy governor speaking against them last month.

[Kman]

I've posted charts a couple times but precious metals are currently following the dollar very closely

DXY (green) vs Gold (orange)

The dollar seems to have bottomed out and stabilised for now so they're both going relatively sideways compared to the big moves in previous months

 

If you look at Hedge Funds positions on the Euro (which dxy is heavily weighted against) they've already reached pretty huge long positions, we've probably seen the peak which points to this indeed being the bottom for dxy

 

The long positions are actually pretty huge vs 2018 considering where the euro price actually is,

I'm expecting more sideways action, another month or so, then a dollar rally and gold/silver falling off a bit (especially silver) and that opening up a nice opportunity to buy (etfs anyway) 

 

[dicker]

Gold still a little down /  sideways in GBP - been so for about a month or so.  

Not sure what the next trigger will be for up / downward move but the US election doesn't seem to be impacting gold.  My long term view is that if either candidate wins, they will create economic conditions conducive to a rising gold price.

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[Bumble]

Here we are again in the last week of an even-numbered month. This is when the big traders push the price around to get their futures contracts and options into the money. I'm not too worried about the price of gold or silver. Stocks, on the other hand, may well see some tax loss/tax gain selling before the end of the year.

[dicker]

USD strength has hit gold price in GBP as well as a drop in the price of gold.  I thought Gold would be higher now - given the stimulus packages printing more money.  
 

Pethaps post the US election it might rise or may even take till Q1

[sixgun]

BIS gold Opex expiry today - generally expect some recovery in price after this. Price usually taken down in the run up to expiry under the sweet spot so the options the BIS hold expire profitably. Of course the market isn't manipulated - it's just me in conspiracy theorist mode. 

Edited October 30, 2020 by sixgun

[dicker]

@sixgun Many thanks for that!

[Martlet]

2 hours ago, dicker said:

USD strength has hit gold price in GBP as well as a drop in the price of gold.  I thought Gold would be higher now - given the stimulus packages printing more money.  
 

Pethaps post the US election it might rise or may even take till Q1

The stimulus is exhausted now, waiting on politics in US to determine what next package will be.  If Democrat get their way, its likely to be more but targeting business, states, unemployment, with less direct cash to people. This is not as inflationary or giving cash for people to drop on assets.  Markets seem to be expecting this, hence $ strengthening. Though strengthen is a stretch, more like no longer weakening. 

Edited October 30, 2020 by Martlet

[HerefordBullyun]

Looking more like gold is going to go up again FOMC and BOE announcements for stimulus today.

https://finance.yahoo.com/news/gold-rises-likely-u-election-232609913.html

 

[HerefordBullyun]

Oh look 150bn injection into furlough scheme announcement today. Although gold has gone down in GBP. It's a longer term win for gold

[Paul]

gold and silver both nicely up for the day and week

presidency in micky mouse land would be a big reason i guess ?

[dicker]

Gold took a sudden and chunky dip this morning.   Any ideas?

[AurumArgenti]

2 minutes ago, dicker said:

Gold took a sudden and chunky dip this morning.   Any ideas?

Pfizer vaccine 90% effective news.

[dicker]

Ah ok.  Makes sense.  

[AurumArgenti]

Just now, dicker said:

Ah ok.  Makes sense.  

Apparently no safety concerns... 😬

[Foster88]

5 minutes ago, AurumArgenti said:

Apparently no safety concerns... 😬

Yet. 😬

I too wondered what caused the drop.

[HerefordBullyun]

Also the dollar is going to be strong as it's the first trading day that biden is now the new president elect which will effect the GBP also. It's certainly going to be a buying opportunity ☺️

Edited November 9, 2020 by HerefordBullyun

[jultorsk]

4 minutes ago, HerefordBullyun said:

Also the dollar is going to be strong as it's the first trading day that biden is now the new president elect which will effect the GBP also. It's certainly going to be a buying opportunity ☺️

Buy the rumour, sell the news... legally Biden will not be president-elect before December 14th when the electoral college meets. 🤷‍♂️

[Foster88]

Currently £1,438. Wonger would be loving this.

[Robda1986]

4 minutes ago, Foster88 said:

Currently £1,438. Wonger would be loving this.

Gotta drop 900 more before his prediction comes true