The current selling is mostly over. Near the end of January, the next bull begins to rise. This should be the first of three rallies in the first half of 2012. The Santa rally for broader markets shifted into 2012. This can force trading dates forward for 2-4 weeks. If this is true and we think it is then gold and silver might get three rally runs instead of two in the first half of 2012. We are anxious to earn most of our 2012 gains in the first half. The second half can not only be a huge mess but would cause a major shift in markets we trade and the way we trade them. I am expecting lots of short-trading in the fall of 2012 on the Nasdaq, S&P’s and other related higher volume trades in 4th quarter’s smoking wreckage. Volatility is going wider and faster. Be careful.
“Gold Seen Extending Best Rally Since 1920 on Europe Crisis, Reliance Says.”
“Gold may extend its best rally since at least $1,920 as investors seek a store of wealth amid Europe’s debt crisis and expectations of slowing global growth and rising inflation, according to Reliance Management.”
“The current global macroeconomic environment is very conducive for higher gold prices,” said Sundeep Sikka, Mumbai- based chief executive officer of the money manager, which runs India’s second-biggest gold exchange-traded fund.”
“The fundamental outlook for gold remains extremely bullish and paints a rosy picture for gold bulls. Bullion reached a record $1,921.15 in September as investors sought to diversify away from equities and some currencies amid the European debt crisis and signs of slowing economic growth. The metal may average $1,766 an ounce this year and trade as high as $2,055, according to a London Bullion Market Association survey of traders and analysts.
“The rise in volatility across all assets makes investors jittery about their investments,” Sikka said in e-mailed responses. “We see gold continuing to attract interest even in 2012. Investors are looking for a haven to park their money as the market sentiment for equity is uncertain.”
“Bullion rose +10% in 2011 for an 11th year of gains, beating the -1.2% decline in the Standard & Poor’s GSCI Total Return Index of 24 commodities and the -9.4% retreat in the MSCI All-Country World Index of equities. Gold for immediate delivery fell -0.4% to $1,611.13 an ounce as of 11:24 a.m. in Mumbai (on Monday).”
“Prices may fall in the “near term” as some investors lock in gains, Sikka said. He didn’t give specific price forecasts.” -Madelene Pearson 1-9-12 Bloomberg.net
