In my last update on 20th Feb’10,I had written it will face Hurdle at $ 1134-1141.50.It kissed $1131.50 & crashed upto $ 1088 level and there after taken U-turn.
Again Yesterday made high of $1137.60.
Now ,What to expect ?
Just watch $1141.50 level.Two consecutive close above this level will take to $1164-1171.50 level.
So why is Soros buying gold? Though he believes gold is the ultimate bubble, he had said before that he likes to ride bubbles. But unlike most investors, Soros usually knows when to get out.
From the WSJ:
LONDON—Investor George Soros doubled his bet on gold at the end of 2009 amid rising prices, a filing with the U.S. Securities and Exchange Commission showed.
The filing, made late Tuesday for the financial period ended Dec. 31, comes after Mr. Soros made comments during the World Economic Forum in Davos, Switzerland, in late January calling gold an asset bubble. He told media at the time that the low-interest-rate environment creates a condition for bubbles to develop and that gold is the ultimate bubble…..
“One common adage…that is completely wrongheaded is: You can’t go broke taking profits. That’s precisely how many traders do go broke. While amateurs go broke by taking large losses, professionals go broke by taking small profits.”
GOLD -MCX :From recent low of 15950 in just 10 sessions it had zoomed to kiss 16760 level.
-It was not able to break 200 Day moving average.
Now ,What to expect from this level ?
-It will face Hurdle at 16814-16886.
-Suppose crosses 16886 then will kiss 17104-17176 level.
On going rally is of corrective nature ,just be cautious at higher levels.
Completed lower target of H& S.
From recent low of 23610 already flared upto 24860 in just 10 sessions.
Governments need to tighten their monetary policies more according to Jim Rogers. Such tightening will result in stocks being crushed nevertheless.
Bloomberg: “We’re overdue for a correction” said Rogers, chairman of Rogers Holdings, said in an interview in Hong Kong. “Stock markets around the world have been going up for the past 10 months.”
“I don’t think anybody has tightened enough. I think everybody should tighten more,” he told Bloomberg. “We have huge amounts of money printed throughout the world. It’s going to cause currency instability. It’s going to cause more inflation. It’s going to cause higher interest rates.”
An extended, related video of Jim Rogers with Bloomberg is below, start from 11:00 for Jim Rogers. He talks across stocks, stimulus, commodities, and gold in particular.
One of the oddest things discussed however, toward the very end of the video, at 27:00, is how Jim Rogers is long both the U.S. dollar and gold. He’s also long the Japanese yen even though in his own words, it, like the dollar, is a ‘terribly flawed currency’.
