Trading xauusd

No problem. As long as you don’t trade on wrong settings. Plus then its no warranty anyways. What does RC say? If you want a warranty, buy a toaster, lol.

Anyways, right now it looks like it could drop to that target of below 1500 and hit the green ema. If it hits and goes back above, it is a buy signal.

What’s gold’s fate after the austerity vote tomorrow?

?? Do you trade xau on the minute chart? You will not see any dent in a daily or weekly about this no event and I doubt it would leave big footprints in a hour chart.

Seems like it was going now into correction mode. Getting closer to entry level.

Okay, some ppl bought that pot dry before it went down that far, lol. Just waiting now for the next correction.

Just to explain a little why I am not eager to have many trades here. I am already in huge profit zone, because I buy xau since a couple of years. If it goes up, I win. If it goes down, I buy dips. Then I win again if it goes up. Sometimes I sell and cash in my profits, but that is rather a seldom occurance.

So, that’s the reason why I do not look for more risk. I anybody wants to have more chances and the same time more risk, you can draw any shorter moving averages and buy on dips on that. Letz say you would have drawn a 15 period ma it would probably have been hit a couple of weeks ago. It’s just then that you have the bigger risk to take, because the stop is farther away.

Right now we have usually a dead time for xau, because it’s summer time and best time for trading it is before the indian marriage season. If anybody has no gold yet, I’d suggest to buy some coins as basement right now. I do not say it can not drop lower, but it very likely to go higher and maybe never come back in the future below around 1.5k. The value right now is a fair value. Buying coins as real money is not a speculation, but sort of an insurance if the official currency goes flat. Precious metals in general are a specific asset class which are opposite to all other classes. So, that’s why it is a good insurance, because if other classes go lower, pm’s go usually higher.

Disclaimer: However, whatever you do, it is your own decision and I am not responsible for that. I only write here based on my knowledge, experience and opinion. Speculation inherents the risk of losing and not only winning.

My broker says that as of July 15th 2011 that the Dodd-Frank Act is now being interpreted in a way that trading XAU/USD spot is no longer legal in the US. Is anyone still trading XAU/USD in the US? What brokers are you using?


And the winner of the week is …

… xauusd. With an ath right now at ~ $ 1660. :slight_smile:

Below is a chart of the gold price for the last couple of decades. In 1970, 41 years ago, the price of gold was $ 35. Right now it is $ 1660.

That’s a devaluation of the $ of almost 98% in 41 years. Risk aversion and people go into the $? Well, that’s how crazy the world is. Real risk aversion is going in gold, not the dollar. It’s not 98% devaluation yet, just a tick below. If xauusd becomes 1750 the limit is reached. Just $ 90 more for an ounce.

So, is gold expensive? Any bubbles in sight? Not right now. It’s still cheap. Almost nobody owns large quantities of gold, beside some central banks and very wealthy families. Okay, nobody came with an atl, so I will help. I have three options for an all time low from now on:

  1. 1500
  2. 1000
  3. 800

The first one would be the price of the low in 2k after real inflation (not those officially funny tuned statistic numbers).

The third one is the raw production price of an ounce of gold bullion.

The second one is a figure between those other numbers.

Whatever number you take, if you take into account that debts of all important governments are right now increasing like there would be no tommorrow, it is very likely that the atl will not become lower of any of those prices.

As I prefer “kiss”, there is an idea to have a med. term investment with lower risk and higher gains than buying the real metal. Set a stop at any of the three numbers, buy at the next dip (after bottom reversal) and adjust leverage appropriately to the risk spread between the low and the entry. Sell if you believe you have enough profit or see any signs of a setback.

XAU is a legend…Everytime people think its the top, then it makes a new top lol

Yep. The perfect freight train with commodities aboard. And somebody is well diversified. Full in since some years.

So, what do we have today? A new ath: of [B]$ 1675[/B] around. The scb has lowered the interest rate and another cb at the east is buying in big chunks. Who wants to get short squeezed next? :smiley:

Hello Mark.

If you don’t have an address outside of the U.S. there is probably just the possibility to trade at the futures market or any other market where gold is still traded. You may go offshore with a fx broker, and a great thread to look around for the options is here:

I however would not go with brokers in unstable regions. So, an address outside of the U.S., say with an entity of a company, would be the perfect solution. Because then you can go with any well regulated broker of trustable authorities which trades xau.

I hope that helps. :slight_smile:

I think though the economy right now in some country is decreasing but the gold will continue to increase. Trades now are really increasing and have a great percentage in the market level.

Hello Joshua,

well I guess we have a new ath again today. Isn’t this boring? Lol.

Frankly, if I look at trends, this is definitely a trend and a market with a very [B]fat[/B] tail, lol. The simple facts behind the rise of pm’s are: They can’t be printed, they can’t be statistically tuned to a value what brings votes to politicians and it is still at a very low price, in relation to the ath/atls of the past if you project that with real devaluation of the dollar. In 1981 the top was around 850 or take the 650 where it have been for a longer time then and after that it went down to a low of 250 around in 2k. 10 Years before it was at 35. If I pick my calculator it shows me:

The factor from 35 to 850 is 24.
The factor from 35 to 650 is still 18.
So, letz take a conservative approach of a factor of 20 for that trend in the seventies.

Now after reaching 860 (letz take again the higher number for a conservative approach) it dropped to 250, which is a factor of around 3.4.

If I project that to the current rally from 2k to now it would mean:

250 x 20 = 5k. That would be the target.
5k divided by 3.4 = 1470 or around 1500. So, that’s how I came to the atl above.

I bought my last smaller chunk almost 2 years ago for around 1100 bucks an ounce, so that’s definitely a safe haven in my opinion.

Sure, history repeats itself not in a 1:1 accuracy. Anyways, we have stronger issues today with all fiat money than what were the issues 30 years ago. I do not think that more socialism in the world (and we have more socialism particularly in the western world than 30 years ago, when the border was more dividing in a western market and eastern socialism world) will have a a benefit for fiat assets. So, it could even climb a lil higher.

To trade all that short term is still risky, though. I wouldn’t go short in that bull market. That’s why I wrote I just buy on dips. The trend is clearly up since 11 years and that it went up for 11 years doesn’t say it can’t go up another 5 years.

When I bought my biggest chunks in 2006 back then all ppl told me it is tooo expensive as many say today, btw. Don’t listen to guys who tell ya something is too expensive, just because of a hunch, lol.

Just to elaborate a bit regarding what I think is “expensive”.

The funny thing is that when it was a bargain, at 480 usd, more ppl tended to say it’s expensive than there are now. The more expensive it becomes, the more ppl seem to become buyers while they see buying opportunities. My guess is that if xau really would reach say a 5k top (nothing is really certain, though), then probably almost nobody will tell you it’s expensive. They will all buy, buy more, buy most …

So, if the crowd sees something as bargain, it is in many cases expensive. If they see it as expensive, it might be a bargain.

Now as it becomes “cheaper”, the guys buy more and faster, lol. ATH of 1715 today.

Some recognize now it must be good for something, despite nobody can eat it like dollars or houses, lol.

I see. New ath at 1780.

Did we have a new ath today? :smiley:

Come on, 3 bucks more and then it’s 1800.

it seems to me that it is just increasing…

Mostly, yep. And we have a runaway gap on the weekly chart. :wink:

I know it becomes boring and even painful for those who never bought, but we have a new ath: 1877. :smiley: