Why did gold go down today?

[Thrashertm]

Fed cut interest rates, that prints money, raises inflation - shouldn't that push up the price of gold? The only thing I can think of is that some investors sold gold to buy stocks.

Other explanatoins?

 

[Thrashertm]

bumped

 

[banjojambo9]

zionist intervention

 

[OptionsTrader]

Why did gold go down today?

Because there was more selling than buying.

My guess is that since other assets were technically oversold it made sense to sell gold if you had been hiding cash in gold as a safe-haven and putting the cash to work to take part in the rally.

 

[billyjoeallen]

This is a great time to buy gold. Buy on the dip. The reason gold is going down is that the market is betting on a recession and less consumption of all commodities. This will only last a short time before inflation fears will push prices up again. T bills are so expensive now that gold will be one of the few safe havens left. I would short dollars also if you have enough risk tolerance for it.

The recession won't end until the housing market finds a bottom. That will likely be years from now.

 

[freedominnumbers]

The same thing happened in foreign currencies. Hold tight, the dollar will move back. You have to wait for the temporary security to wear off.

 

[TexasAggie09]

Any time there is a rate cut or any event that has impact on the supply of a currency it takes a while for the market to adjust to that stimulus. It's the short term fix to a long term problem. It works for now, but some time down the road the market is going to decide that it doesn't like these short term fixes any more. That's when things really get bad.

In fact this is exactly what Dr. Paul said last week on Cavuto. Cavuto pointed out that the dollar and the market had gone up right after the Fed dumped $200 billion into the market. RP told him we'll see what looks like improvement for 1 or 2 months, but then things will start to go down hill.

These actions just keep blowing air into the bubble making it bigger and bigger and making the inevitable burst just that much worse.

 

[Dr.3D]

I await the bubble pop heard around the world.
The longer they try to keep the bubble from bursting, the bigger the burst is going to be.

 

[Carole]

I thought I heard someone on the business channel say the dollar recovered slightly. I may have heard wrong and certainly would not expect it to recover at all, but even so it would likely be temporary. Gold down slightly for several reasons already mentioned here makes sense to me.

Also, at some point the professional gold investors will attempt to drive it down in order to shake out the non professional investors, then buy it low in preparation for the big rally. At least that is what I was reading a couple days ago. I am sort of waitng to see before I spend what little spare cash I have on a small gold or silver investment. I know it is a long term investment normally and can rise and fall quickly, so I have not commited yet. I want a Canadian maple leaf, but do not want to pay top dollar for it.

 

[thuja]

i never watched so much television, listening for clues from the cnbc people, who are sometimes hysterical. but now i'm turning it off for awhile. they know no more than people here do, it seems.

 

[smartguy911]

zionist intervention

what a dumbass response

 

[DSmith]

The market seemingly "priced in" a full 1% cut in the FFR, with "only" .75 some could argue that the Fed is signaling a slow down in rate cuts. It's a suckers rally.

 

[davver]

The market seemingly "priced in" a full 1% cut in the FFR, with "only" .75 some could argue that the Fed is signaling a slow down in rate cuts. It's a suckers rally.

That's the most common explanation.

Overseas the dollar is starting to pull back and gold recover. Oil still rallied yesterday so expect gold to play catch up. Might be a good chance to get in under $1000.

I wouldn't read too much into the day to day movements of the markets. Plant a flag and stick with it, markets can be very irrational in the short term.

 

[Dr.3D]

i never watched so much television, listening for clues from the cnbc people, who are sometimes hysterical. but now i'm turning it off for awhile. they know no more than people here do, it seems.

I would have to say, they know less than the people here do or at least they make it look that way.

The people on CNBC are there to sell stock. It is like a big commercial.
"Everything is rosy." "This is the bottom." etc. you hear it from them and know it is a bunch of hype.

There is only one there who I would even listen to and that is Rick Santelli.
He knows what is going on but can't say very much about it, Just just watch his smiling face and you know he is wise to what is happening.

 

[theseus51]

People selling their gold to buy stocks?

People tend to take profits once in a while. Any long term chart going up or down looks nice and steady, but there are many short term bumps along the way.

 

[RadiantBlueLight]

The stock market and commodities market are two different creatures now. Some people are starting to realize what drives the dollar which is why gold, corn and oil are at all time highs. Other traders are still playing slot machine with stocks hoping the Fed will save them if they just keep pushing the buttons. These traders are what is making gold go up and down in the short term.

 

[slacker921]

look in your local paper and watch your local TV.. the ones around here have ads for jewelry stores desperately buying gold and silver. They wouldn't be buying if they think the price is going down.

Silver also dropped.. it had run up over 21 but has settled back just under 20.

 

[Truth Warrior]

"Smart money" periodic profit taking. Some part of the gold price represents speculation of future price rises or falls. "Buy on the news. Sell on the facts.", type thinking in action. Who are the newbies gonna buy from? Answer: the "smart money".

 

[Dr.3D]

TV worth watching: Taylor on devaluation, Embry on gold suppression

TV worth watching: Taylor on devaluation, Embry on gold suppression​

Submitted by cpowell on 11:47PM ET Tuesday, March 18, 2008. Section: Daily Dispatches
11:45p ET Tuesday, March 18, 2008

Dear Friend of GATA and Gold:

Jay Taylor, editor of J. Taylor's Gold & Technology Stocks newsletter, proved last Thursday that you can talk candidly in the United States about the deliberate devaluation of the dollar ... as long as you're in a soundproof studio in New York and your remarks are being broadcast only out of the country -- to Canada.

That's how Taylor was interviewed by Andrew Bell on Canada's Business News Network, and for another couple of days you can watch it here:

http://broadband.bnn.ca/bnn/?noad=1&vid=38273

A few hours earlier on BNN last Thursday, Sprott Asset Management's chief investment strategist, John Embry, was interviewed by Niall McGee and proved again that, in Canada, you can get on national television talking about central bank suppression of the price of gold. Embry predicted that the central banks would make $1,000 a battle line with gold. You can watch the interview with Embry for another couple of days here:

http://broadband.bnn.ca/bnn/?id=2223&vid=38106

Embry will be a featured speaker at GATA's conference April 17-19, "GATA Goes to Washington -- Anybody Seen Our Gold?," for which you can find information at the link shown below.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

 

[scooter]

"Smart money" periodic profit taking. Some part of the gold price represents speculation of future price rises or falls. "Buy on the news. Sell on the facts.", type thinking in action. Who are the newbies gonna buy from? Answer: the "smart money".

This is what is going on. There is good money to be made in trading gold, but not so much for just holding on to it.

Also, you need to consider the research of guys like Milton Friedman about the stock of money. He used to say that it takes 12-18 months for prices to reflect the change in money supply. It shows up first in production, and then a year or so down the road in prices. At first interest rates decline and then they go up.

I doubt we've even seen much of the inflation from the stuff the Fed started a few months ago.