Gold Futures as of March 28th 2007 and as seen from a ‘daily’ prospective looks very healthy for Gold’s future. After a reaction to 636 from a high of 694 it has made a steady path to a .618 fibonacci resistant point. One however, would like to see the Gold Futures cross the previous high of 694 and then on to take out the 732 top before forging its way to 760ish in the near term and looking at ‘geopolitical’ issues that are brewing today the chances of a near term rally by the Gold Market is quite strong …..
Now if we look at the geopolitics of the day one would immediately surmize that the Gold Futures destiny is in taking out 694 & 732. Does anyone honestly believe that the current Middle East crisis will be resolved without any fall out???
Obviously history has little meaning or consequence to those that make decisions effecting so many. This discussion I will leave for another day …
Gold is the inverse of the U.S Dollar without question but the influence and the significance of geopolitics must never be under estimated as the world today is being divided and carved into sections of influence with plenty at stake which will determine ones existence for generations to come ……. lest we try as a race to live as one a fact that appears lost with most world leaders as they scramble over each other for the precious little resources we have become so reliant on.
Our role in this Universe is to Grow and Pro-Create but at what cost???
Again I will discussion geopolitical, issues at another time as it is of the utmost importance and effects the direction of the Gold market in the short term with knee jerk reactions which could be the very catalyst that catapults Gold prices into the stratosphere.
For now take a look at the U.S Dollar Futures contract as of March 28th 2007 and you will automatically see that it is in a disaster zone with little hope of coming out of it unscathed at the moment.
One sick puppy wouldn’t you agree???
Whilst Gold Futures has an inverse relationship with the U.S Dollar, the U.S Dollar reflects the health of the U.S economy and basically how the international economies and players interpret the reports on such healthiness.
Gold in turn is the ultimate currency and thus when there is trouble on the horizon there is rush or stampede to acquire it. It is also the most frustrating of markets as the Gold Futures and Gold Shares can and are easily manipulated due to the size (market capitalization) or lack of but only to a certain degree as any market will do what it ‘naturally’ has to do in time.
It will be my goal to interpret and explain to the best of my knowledge, ability and skill (and I hope to do it justice) the formula presented by Mr. Sinclair …….
