Hedging against Gold

I am shorting gold right now and have had relative success but the recent stock market panic has made me uneasy. I have a very very strong margin but I still want a way to hedge the negative impact of gold. Any suggestions? I am doing Gold/XAU

Would longing gold/eur work?

ten charackters, ten charackters

Many people like to point out that gold is related to some crisises.

fact= it isnt

ppl like to say if stocks go down gold goes up

fact= thats not true

ppl think gold will become more expensive

fact= it for sure will not

true facts: gold isnt related to stock prices it isnt related to crisis, it isnt even related to some sort of economy (to am minimum extend yes but no not really)

why? look, this graph tells you a inflation cleaned gold price.
Gold was in World war 1 and World war 2 and in the great depressen worth less then it is today. so crisises dont influence gold as “save harbour”.

gold is a pure greed and fear market and has not much logic behind it except rumors people tell and other follows.

one thing is sure, you will not loose shorting gold in the long run the next few year, you will for sure loose going long on gold the next few years.

time will tell

Thank you for reassuring me. I am overwhelmingly shorting gold for long term but am thinking of short term shock absorption tactics to profit a bit and expand my margin. My University professor also thinks gold is going to get cheaper primarily because we are a fiat currency system and gold is just not attractive as money anymore.

is that chart adjusted for inflation?

yes starting prior world war 1.

yes there r many factors that get gold going short the next few years. i skipped explaining them and only went onto whats important to deillusionise the commercials people see on tv saying “gold is a secure thing, gold is a crisis currency, gold is a safe harbour, etc etc”

oh no but I completely believe you and agree

hedging is a great option. in my view you can hedge with EURUSD or eurogold… both would be the great options.

Yeah I saw. They aren’t exactly 100% correlated as Gold/Eur usually has much more amplified effects but I hedged starting with 1 ounce. It seems Gold/Xau is stuck in a trade range so I am just sort of waiting what will happen before I add more to my hedge. I have a feeling it will drop back down.

So far the 1200 level has proven a good support on gold, daily chart. The bullish trend is still in place and price may try to touch its latest high again.

Of course however economic data from the US is just coming very good and China’s stance has sort of eased the trend. Also OPEC members seem to be agreeing on cutting production which has put oil at 34 leading to a short term rise on equities. Manufacturing output has also increased which is the sector that caused this scare. The fundamentals are just not in line for gold, at least for the rest of the year. It rose too sharply and there seems to be more exhaustion with buyers.

Gold is still in a range with the 1257 as resistance and the 1200 as support. No clear direction until a breakout of any of those two levels.

newb question.
If you short gold/USD and go long on gold/EUR aren’t you basically shorting EUR/USD and paying more spread? aren’t the differences in correlation also the result of EUR/USD fluctuations?

Gold bounced off 1208 again, but I think next week it will reach 1200 again. I doubt it will break below that level though.

Risk aversion has not helped gold that much. The precious metal is still very undecided.

I don’t necessarily think you should compare buying gold with euro as shorting vs. USD. It would imply that when gold goes down against the Euro, it means the USD is depreciating. I don’t think that is the case, although I think appreciating currencies help push gold down.

Just check the gold/euro chart and eur/usd chart and you can’t really establish a correlation.

Personally, I don’t look at Gold/Eur all that much, and I don’t really see much of a correlation either.

Gold/Usd is testing 1235 again and if it breaks above that level it will likely reach 1260 again.

Gold is making higher lows on the daily chart and the bullish energy may be accumulating around the 200 week EMA, a breakout may happen at any moment.

and lower highs aswell. depending on from which side youre looking :wink:

I really can’t see gold much higher than it is now.