Dollar and Gold Move Sharply Higher on Panic

Cryptogon.com
Tuesday, February 17, 2009

WARNING: This is not a recommendation to buy, sell or hold any financial instrument.

Trying to pick a story to post right now is like standing in the middle of a forest fire and pointing out some particular tree that’s on fire.

It’s a wreck, from one end of the world to the other.

The next resistance for gold to overcome is $988 and then $1032. Shorter term traders, think about protecting profits. Longer term gold bugs, it might be better to look away for awhile, or just squint and pray that the thing clears $1032 and bases up there.

(ARTICLE CONTINUES BELOW)

I went looking to buy protective puts just now. HA Me and everyone else. They’re expensive. I’m just holding tight.

• A d v e r t i s e m e n t

The simultaneous gap ups on the dollar and gold indicates serious doom. It means that the herd is seeing its life flash in front of its eyes.

Via: Bloomberg:

Gold rose to its highest in almost seven months in London as investors bought the precious metal to preserve their wealth on speculation the global economy will deteriorate. Silver climbed to a more than five-month high.

Stocks in Europe and Asia retreated on concern banks face further losses and lower debt ratings and as the economic slump deepens. Bullion has climbed 33 percent since October as governments lowered interest rates and spent trillions of dollars to combat the recession. Physical demand has pushed holdings in exchange-traded funds to records.

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