Nice 200 week exponential moving average there.... You've got me agreeing with you here....
YaKa
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yes. i think the 200w ema if reached is worth a good try down.
smitheric1970
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Agree, nicely done. But, wow sub 1000 seems like a long reach. What is your thinking fundamentally with that? If interest rates come to fruition?
YaKa
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You seem to forget that your 1000 level was not ever reached before 2008...
As humans, our emotional time span does not enable to apprehend the market correctly... We unconsciously think, in various time units, that was was prevailing in the last 3 units will be true for ever.. true in daily, weeky, yearly etc...
Taking that into account you will realise that the norm for gold has been sub 1000 forever before the last 6 years.
as per the fundamentals:
1) the trend is down and it fell 800 dollars already... so 200usd is next door really.
2) there is defation.
3) i have the feeling that (2) is going to accelerate with a shock that's coming after the summer.
smitheric1970
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Very interesting, you definitely have my attention. I would be very interested in a /KC chart by you if you have any interest.
YaKa
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Coffee.. posted something a few weeks ago.. still same picture.. dig it out..
afbitcoins
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Central banks cannot resist creating unbacked fiat though. Without gold backing there is no limit. If we enter a deflation the central banks will attempt to print their way out! Gold and loaves of bread could reach silly numbers.