GOLD

It'll be interesting to see which way gold runs if we hit some slower economic news, might even correct a bit (it could just be the new highs but there sure is a lot of people out there getting bullish on gold again)...

Interesting... even gold got slapped hard in today's bloodbath.

And it also looks as like if the jitters take hold of the market again, the AUD will go with it and everyone will once again run to the USD despite it's obvious troubles.

Gold: $1201/04; $1219; $1231; $1277; $1297/1302...

Well gold got smashed last night on the good employment figures coming out of the US - down 4%!

Will be interesting to see where it goes from here, and whether the good economic news continues.

Bank of Korea Sees ‘Illusion’ in Gold, No Cash Return

Dec. 8 (Bloomberg) -- The Bank of Korea, diversifying foreign-exchange reservesaway from a falling dollar, said that additional gold holdings aren’t attractive as most other central banks aren’t buying and the metal offers no cash returns.
“There’s an illusion in gold,” Lee Eung Baek, head of the bank’s reserve-management department, said in an interview.
“We follow the big trend. Gold isn’t the trend.
Out of more than 200 nations, how many countries have bought bullion?”...
more...Bank of Korea Sees ?Illusion? in Gold, No Cash Return (Update1) - Bloomberg.com

My understanding is 2009 will be the first year in two decades that central banks will become net buyers of gold:

Mineweb - GOLD NEWS - Central banks to be net gold buyers this year - Blackrock

So it seems to me central banks might be preaching something and practicing something completely different (though they have a bad habit of doing this).

It's important to remember that currency also provides no return, yet people still happy to hold currency in low or no interest accounts and their wallets, even while central banks around the world are printing like crazy.

So the fact that central banks talk about it being a bad idea to hold assets that offer no returns seem hypocritical given holding the very asset they control (currency) which they, by their own policy, attempt to debase at a rate of 2 - 3% per year.

Moral of the story - don't trust bankers! They are worse than politicians.

If gold fails to hold $1106/04 it may fall to: 1098, 1075, 1049, 1033, 1018...

Gold:
Resistance at $1158... $1193
Support at $1122...$1098

Down side:$1072; $1048; $1024...$955

Hey tropo do you trade any commodities?