Dollar and Gold Move Sharply Higher on Panic
February 17th, 2009WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
Trying to pick a story to post right now is like standing in the middle of a forest fire and pointing out some particular tree that’s engulfed in flames.
It’s a wreck, from one end of the world to the other.
The next resistance for gold to overcome is $988 and then $1032. Shorter term traders, think about protecting profits. Longer term gold bugs, it might be better to look away for awhile, or just squint and pray that the thing clears $1032 and bases up there.
I went looking to buy protective puts just now. HA Me and everyone else. They’re expensive. I’m just holding tight.
The simultaneous gap ups on the dollar and gold indicates serious doom. It means that the herd is seeing its life flash in front of its eyes.
Via: Bloomberg:
Gold rose to its highest in almost seven months in London as investors bought the precious metal to preserve their wealth on speculation the global economy will deteriorate. Silver climbed to a more than five-month high.
Stocks in Europe and Asia retreated on concern banks face further losses and lower debt ratings and as the economic slump deepens. Bullion has climbed 33 percent since October as governments lowered interest rates and spent trillions of dollars to combat the recession. Physical demand has pushed holdings in exchange-traded funds to records.
“The very big uncertainties in the stock market and economy are driving investors into gold and precious metals,” said Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany. “We are seeing the first attempt at reaching the $1,000 mark this week.”
Gold for immediate delivery rose as much as $25.40, or 2.7 percent, to $967.15 an ounce, the highest since July 22, and traded at $962.02 by 1:15 p.m. in London. April futures gained $22.10, or 2.4 percent, to $964.40 in electronic trading on the Comex division of the New York Mercantile Exchange.
The metal rose to $962.65 in the morning “fixing” in London, used by some mining companies to sell production, from $942.50 at yesterday’s afternoon fixing. Spot prices reached a record $1,032.70 in March and are up 9.3 percent this year.
Some investors are buying precious metals on speculation government stimulus packages will spur inflation, Fertig said.
What horrifies me is the break of the descending triangle on the $indu. Clear ds break. tgt ?
ummm … <= 4250. Worse, that number is only to the last valid support level on the $indu, and it is weak support. My stuff shows actual tgt < 3750.
If I were speaking of irrelevant numbers alone, this might not be a big deal. Who really knows or cares about some number on an index, anyway? What most people do not understand is that those numbers are really shorthand for the number of people who will lose their jobs, their homes, and, ultimately, their lives.
This depresses me out of my mind, and that disturbs me profoundly on a lot of levels at once. I know you (as well as most of the folks who come here) are only too well aware of what is coming, but to see it actually occurring, in realtime, in front of your face, is overwhelming. I’m not ready for Mad Max.
I don’t think there has ever been a more clear-cut need for community than now. The realities of survival do not favor the loner. Consider just one scenario: ” If each lone survivalist stores a year’s worth of food, a marauding band of 12 only needs to find and conquer one survivalist per month. This will allow plenty of time to scout, identify, and acquire a potential target. A survivalist that stays in his underground bunker might be safe. Eventually, our lone survivalist starts a fire, plants a farm, or hikes in the woods (e.g., to hunt for game), having done so, he has then created trackable signs that lead the marauding band right to the hiding location. The first time the survivalist fires a weapon to kill game or fend off an attack, any marauder scouts within miles will know where to go next.
There’s a reason, you don’t see any one-person castles in Medieval Europe.” — anonymous. This is just one of hundreds of scenarios which illustrate the point.
I think Medieval Europe after the plagues might be a good historical model to study … its object lessons might be quite applicable soon
– cybele
I also want to add, the dollar and gold moving up together is most definetly a sign of the apocalypse. I didn´t see it coming in mid-Jan, when I was trying to day-trade with market orders, but had I been following this system even a rule-changer like that would have been ok.
Now here´s the interesting analytical question: where does gold signal the dollar to start gapping-down? I´m suspecting that 2009s equivalent of Sept. 15th will be a rapid, seemingly overnight dollar devaluation, probably after testing the support at USDX 70. I´m trying to figure out what the convergence divergence between gold, the DX and the 10-year t-bill might mean for turning points in this disinflation transition.
I happened to wake up at 3:00 a.m. Tuesday morning to see the Ticker Forum headline: RED ALERT: FX Dislocation in Process!
No one seems sure where this is coming from.
Maybe I don’t have this right, but it sounds like there are currencies that are in trouble, and people are fleeing to the dollar. Paradoxically, this is not a good sign–for anyone.
Someone please correct me if I’m not understanding this right.
@dagobaz,
Darlin, i’m with you re if there was ever a need for community it is now. My Amish farmer asked me this last weekend to take him to Pittsburgh and back for a meeting to start up his CSA. I was there in a heartbeat (as soon as I learned that Mom’s caregiver would cover me for that). I’ve been going round the office undercover to promote Moses Miller’s undertaking.
Grass fed beef, organic pork, eggs, vegetables,etc. All within a hundred miles of Pittsburgh. All introduced to the idea have been 100% receptive.
Heh, ha, ha tweedily dee. I got my year end statement from my “tax deferred federal savings plan” yesterday. Lost $25k invested in the most conservative of all funds. One has to wonder where did all that money go. Methinks into the massive undercover overvaluating of all assets. The gig I think is up for paper assets. Get out of dodge now if you can. Unload of all your paper. Its just funny-money afterall. Those of us holding dollars are only at the beginning of Armegedon, or whatever.
So without value left to our dollars what do we do? Rape, pillage and burn? That’s not our style here at Cryptogon.
I dunno anymore than the rest of you all reading this website. I’d just spend cash on necessities, stock up. Avoid going on buying sprees cause EVERYTHING from soup to nuts is on SALE now ( unlike me who shops on line and then returns all clothing and shoes-really don’t need them- I’m keeping the USPS and UPS in business).
To make a long story much shorter – a first step in going local (within 100 miles) is to find a CSA. Imagine the people that you might meet there. Look at the Weston Price Foundation for local chapters.
I for one am have no ducats left to invest in freaking out about anything else. My life has been underwater caring for my Mom now for all these years and I’m burnt out head to toe.
I for one hope you are holding to the mantra: food, water, shelter, and i think the additive should be health. Get yourselves grounded in these four things and I think it won’t really matter to you what happens with the price of anything.