As my comment in another thread posited Bill, I don't doubt that they see the same thing on the charts that I do. Namely, little chart support for gold until the 600 mark and little for the miners after XAU 135 until the 121 level.

Nevertheless, see this helpful remark by China's (http://quote.bloomberg.com/apps/news?pid=10000080&sid=aV75beK4jSeQ&refer=news_index)Central Bank Advisor, which should serve to underpin the move in gold.

The miners had reached oversold levels, but what is oversold can become even more oversold, especially as gold on a weekly basis had really not declined enough to say that it had worked off April and early May's froth. That's why I had suggested partial positions only at the 135 level XAU. Downside risk was still apparent. We'll see.

Long: GLD, GDM, various miners.

I tend to think that this is a reaction to the Fed meeting minutes coupled with last weeks drop in M3b (http://www.nowandfutures.com/key_stats.html). If the Fed and the new Treasurer decide to mop up some more liquidity, the speculative dollars that have been going into gold and silver should lessen.

If you use the 534 mark as the beginning point for the move off the March lows ($GOLD-EOD)and 730 as the high, then a 50% retracement could be argued at the 632.50 level and a 61.8% retracement at the 609 level. I would defer to g034 as to the reasonableness of these calculations. 50DMA is at 631.50. The confluence of those two (50DMA and 50%) may provide support so I am modifying my original comment to provide this alternate interpretation.

g034?

....and now $USD reaches the magical 85 handle at 7am per INO site, so NY can do some major damage to gold if it wishes. It is all set up for them, just like it was the other day.

MarkM,

Those are the calculations from stockharts.com this morning.

The 50% retrace off and the 50dma coinciding at roughly the same $ is the type of overlay that I look for and has provided support in various trades in the past. What would make it a better candidate for purchase would be if the RSI is oversold or we were near an uptrend line. The trendline is non existent, but the daily RSI 14 is at roughly the low levels of the past 9 months.

As an awesome trader (deceased) said many times; "plan your trade and trade your plan". So; I have been waiting for this retracement for buying back some of my earlier sales AND because I believe this move will bring fear in to the market, I will stick to my plan (with bullets to spare for any lower levels on my radar).

IMHO, the fundamentals for gold are stronger now than they have been over the last few years due to fear mounting in the stock market. I also have the nutty notion (as does Bill), that big money (gnomes in Bill speak) has been in the act of accumulating gold over many years and have been waiting for this time for gold to rise. If I am correct, this selloff is an opportunity that they are taking advantage of and won't be lost on MY p&l. If I am wrong, then the gold bull is over. Does anyone think it's over?

Yesterday, Goldman just raised their view on gold to "attractive" if my memory is correct. Will the sheeple follow Goldman?

MarkM,

Those are the calculations from stockharts.com this morning.

The 50% retrace off and the 50dma coinciding at roughly the same $ is the type of overlay that I look for and has provided support in various trades in the past. What would make it a better candidate for purchase would be if the RSI is oversold or we were near an uptrend line. The trendline is non existent, but the daily RSI 14 is at roughly the low levels of the past 9 months.

As an awesome trader (deceased) said many times; "plan your trade and trade your plan". So; I have been waiting for this retracement for buying back some of my earlier sales AND because I believe this move will bring fear in to the market, I will stick to my plan (with bullets to spare for any lower levels on my radar).

IMHO, the fundamentals for gold are stronger now than they have been over the last few years due to fear mounting in the stock market. I also have the nutty notion (as does Bill), that big money (gnomes in Bill speak) has been in the act of accumulating gold over many years and have been waiting for this time for gold to rise. If I am correct, this selloff is an opportunity that they are taking advantage of and won't be lost on MY p&l. If I am wrong, then the gold bull is over. Does anyone think it's over?

Yesterday, Goldman just raised their view on gold to "attractive" if my memory is correct. Will the sheeple follow Goldman?

Long: GLD, GDM, TRE, GG

I agree Mark, that what becomes oversold, can become even more oversold. I tried a bit of bottom fishing and look what I've ended up with :(.
It appears weak gold/commodities will pull the US market down. Plus the bonds were faking out, bond yields are nearing highs again.
Currently still short some sugar, eyes on cotton. Waiting for gold to enter Bill's accumulation zone again, I got burnt this time.

I've really pulled back on my trading recently because these markets are so schizoid, and nothing looks good on my charts. I try not to go bottom fishing as tempting as it may look. It's amazing to me that a few weeks ago, when inflation was supposedly not a problem, the precious metals stuff was all doing so well, and now that we "suddenly" realized that inflation is a problem, the precious metals, and base metals, as well as oil, are all getting pounded.

I understand that there's fear that that the Fed will drive us into a recession, but in the old stagflation days of the 70's energy and mining did great. So, what's different now? Or, is all of this just profit taking from the big run we saw over the past several months?

I'm looking to buy back some Aussie stocks that I sold a few weeks ago, since the Aussie index is getting whacked, but I'd like to wait until the thing stops getting beat up first. We shall see.

The miners are really putting up a good fight here! NONE of my very tight stops (green side ) are hit and gold is down over $20. The 135-140 XAU range is proving a very tough nut to crack. So I think traders are recognizing g034s fundamental case.

I've been studying markets since the 80's, and your site is shaping up as one of the best resources I've EVER come across! -

Very exciting that you're putting this together in these times when, as I like to say, "we're ALL traders now -- whether we like it or not ..."

Without awareness and action in financial markets, NONE of the little people will EVER be able to retire! - Jock

Jock

$USD reversed on economic reports coming out beginning 10am so attack on gold aborted. Crude gapped down open and went up also. They'll try again another day if gold stays weak and below 640.

XAU:Gold ratios have steadily improved since May 19th low that stockman alerted all to. Continued positive divergence.

Good trading all.

just wanted to say "Thanks" for the technical input, everyone. Added to the positions yesterday at open. Long GLD, BGO, AUY, GG and a small internet stock, IIP.