As if we needed yet another argument for the Gold bull resumption case. Bloomberg is the quintessential example of a Gold hack among the mainstream financial media sources, intentionally spreading misinformation and confusing statements routinely when it comes to Gold. Today’s hatchet piece is no different.
Here are quotes from the article (with my comments in parentheses after):
“Gold in New York fell to the lowest price in more than a week” (a few paragraphs later the horrifying fall is revealed: “Gold futures for April delivery fell $1.70, or 0.2 percent, to close at $1,122.30“).
“Gold is “unlikely” to be China’s primary investment to diversify its reserve holdings because of price risks, said Yi Gang, head of the State Administration of Foreign Exchange.” (Great – this means China is back in the market looking to buy Gold at current prices!).
“It’s all about the dollar,” said Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois. “With the dollar continuing to strengthen, gold doesn’t have a chance.” (Of course, the Dollar is topping and Mr. Kaplan is as big a Gold bear as Nadler over at kitco.com – whenever a bearish Gold quote is needed, Mr. Kaplan is available).
I haven’t perfected this indicator yet, as there often seems to be a brief lag time before the ideal buy point, so we’ll see. It is also hard to use a permabear as a contrarian signal. For example, Nadler over at kitco.com is bearish every day, so he can’t be used as a timing signal. There may be too much noise to use the Bloomberg indicator as a buy signal, but the point is an important one – don’t believe a word Bloomberg has to say when it comes to Gold!
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