RE:damage controlMayorRobFord wrote: Planning either to switch to U early on Monday, or getting the f out of this fraudmodity and into gold, JNUG or JDST. Whichever direction gold heads on Monday to ride the trend for the day. Hovering just above $1300. What's the vote? Remember I'm the team leader on this NG board, I say put it to a vote, and nobody does anything different!
Long-term I'm bullish on gold from these levels. The industry cannot sustain itself if gold sits at $1300... but the recent ride above $1300 is being attributed to shorts covering. Every tapering event is another excuse to sell down gold, so I'd guess it doesn't go too much higher from here but I wouldn't bet on that.
Of course, nobody saw Iraq's central bank buying billions in gold last month either... and with Abenomics in full swing and I'd bet the ECB will eventually implement the QE it keeps bleating on about as soon as it is given the legal authority to do so...
When the three major world reserve currencies have or will double, triple or more their money base it's hard to imagine central banks will not be diversifying even more into gold. And if the thinking that China will back the Yuan with gold eventually comes true then any gold exposure will be a winner.
But all of this is long-term. Short-term, I wouldn't add any bets either way beyond playing intra-day volatility.