Yukon Nevada Gold Corp T.YNG

oil and gold

[theKid5]

I’ve been reading a lot of reports on gold and where people expect it to go.  Some people think that the US economy is coming back and that everyone is going to jump into the markets and drive gold down to 850’s.  They base this on a few ideas and one of them is that Oil is stabilizing.  Oil prices use to be a sign of a strong US economy buying up all the supply but it also put strain on the currency.  Oil up dollar down.  This last rally was different but if oil prices keep going up it will soon be a huge expense for Americans and will again put pressure on the dollar and drive gold prices higher. 

I think oil prices are stabilizing because of China and OPEC cutting production, not because the US economy is getting better.  I also think this rally was technical based and not fundamental based and therefore will not last. 

I don’t think we will go below 900 but if we do it will be short lived. 

Anyone disagree with me?

[aristoenigma]

I would support your view Kid. The basic fundamentals for gold are way ahead of any market manipulation now. The consumption and lower production and prior load up by Europeans et al will keep POG from freefalling. The value of the US buck is effectively gone to a shrivel with the Fed printing what they have recently. The fiat value of the greenback is based on confidence in the system. How much

[pruiter]

Am holding my gold, whats worrying me is mainstreet is talking gold now,  that has allways be a time to sell, Oil is looking like a buy. All this money looking like a suger high; Oil could be a better play this summer then gold, Just my gut talking

[theKid5]

I think Oil will out do gold this summer but that will help gold stay over 900,  maybe even push it to 1200.  but who knows with all this new demand and the global gold supply becoming harder to mine it could go to 2000.  For oil stocks I like to watch HOU and Oil.  I also work in the oil and gas and know that brasil is the only country finding large oil reserves.