The price of gold fell $7.60 to over $757 Friday afternoon, as several discussions took place across various Stockhouse Bullboards on where the price may be heading, and whether gold is at its “rightful level”.
On the Horizons BetaPro S&P TSX Global Gold Bull Plus ETF (TSX: T. HGU, Stock Forum)Bullboard Friday, posters gave their thoughts on the subject, including Sharing who said:
The current gold price is holding up too well! Very scary, I hate seeing huge wild swings... but here we go. Gold Stock sentiment has been rising for the past couple of weeks, the declining gold price isn't dropping sentiment as fast as it should be. The charts seem to indicate a total disconnect between gold and oil is fast approaching. If we don't get under $700 today watch out. $900 gold soon, then who knows where from there...a mass reversal potential is developing on the short side[sic].
maybach added:
“$740 next support for gold,if it doesn't hold then $680 next.HUI going to test 175 level. IMO[sic].”
moneydigger also noted: “Today's action really sold me on gold, $750 is a strong base here and I don't see any downside on Gold from here. Back to top of trend next week ($820) then who knows? Looks like we will stay between $750 and $820 until the US dollar gets a real good kick in the teeth. Just a matter of time that the US dollar will go down again![sic]”
On the Detour Gold Corp (TSX: T.DGC, Stock Forum) Bullboard Friday pleasureisland asked whether certain gold companies might benefit when investors “pile into the gold market”:
“Question: When the present economic mess settles & the gold price corrects to its rightful level (most people believe its being held down), do you not believe those people who are presently sitting (waiting) on the sidelines will pile into the gold market? And those companies with both proven & inferred reserves will benefit tremendously, no?[sic]”
justlikethat replied:
Of course, but I disagree with your premise that todays gold price is somehow a shadow of it's former self. Gold as money or gold in real terms by signifcantly more oil, food, clothes, cars, houses, you name it, then it did just 6 months ago. Look at the massive $ strengh that has occured over this time as well. Gold should be sitting well below 700 right on those fundementals alone. So, is a 750 gold price really all bad? With that said, I think the gold market is smelling inflation 9-12 months out. Someday, the fiscal and monetary stimulas is going to kick in and I don't think central banks will be in a position or immediatly sterlize the inflation. They cannot destroy a fledgling system by pulling the rug. They are much more committed to inflation now then at any other time over the last 50 years. They would much rather go down this way then by deflating.
I'm still waiting for all of the paranoid calls for the comex to crash to come true![sic]