Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

Archive for the ‘gold prices’ Category

The Debt Crisis Continues—It’s
Like a Credit Card Shopping
Spree After Losing Your Job

By | August 19, 2011

The spot price of gold is now well above $1,800 an ounce and gold stocks are reaping the benefits. Right now, the stock market is experiencing a crisis of confidence—not in the ability of corporations to generate earnings, but in the macro sense of country economies, debt and deficits. The global debt crisis is just that—a crisis—and it’s been building up for years.

Gold Burning up the Chart: My Gold Advice

By | April 29, 2011

What a few months it has been for gold. With war worries in Libya to debt concerns in Europe and the United States, along with rising demand out of China and India, it appears to be the perfect storm for driving gold prices higher. In fact, the break at $1,500 was much sooner than I had expected and, based on the chart, prices could go even higher, albeit the buying may be somewhat ahead of itself and hence vulnerable to some profit-taking.

The June gold broke to a record high of $1,535.10 on April 28 and is looking to go higher. The chart showed a bullish inverse head and shoulders formation in March. Prior to this, there was a bullish V formation in January and early February. The June gold made a strong breakout at the $1,440 resistance that was in place since November 2010 in early April.

Downgrading of U.S. Credit
Rating Just Tip of the Iceberg

By | April 20, 2011

In coming up with a headline for today’s editorial, I was contemplating just using the word “denial.”

Simply put, the investors and markets are in denial…much the same as an alcoholic who thinks that if he skips drinks at breakfast and lunch, he’s okay to drink at night.

As reported here Monday, credit-reporting agency Standard & Poor’s downgraded the U.S. “AAA” credit rating from “stable” to “negative.” It was one big, loud message: if the U.S doesn’t get spending under control, its credit rating will be jeopardized further.

Three Major Financial Trends
Investors Can Profit From Today

By | April 8, 2011

Three major trends in the financial markets, all from which investors can make money, continue their development this morning…

Trend #1: Rising long-term interest rates. The 10-year U.S. Treasury hit a yield of 3.6% Friday morning. My forecast calls for the bellwether 10-year Treasury to easily sail past 4.0% this year.

Dow Jones Gold Ratio: Making Money
from this All-Important Indicator

By | January 31, 2011

If you are a stock market investor or a gold investor, or both, today’s PROFIT CONFIDENTIAL is a must-read. Why? Because, by the time you are finished reading this issue, you could very well be convinced long-term that the stock market is going down and gold is going up. And you can make a lot of money from these moves.

On Track for a New Reserve Currency

By | November 1, 2010

I think that investors should be keeping a close eye on the spot price of gold and be ready to consider new positions in gold stocks if there’s any meaningful correction in the commodity. Spot prices seem to be taking a bit of a rest here, but they’re still holding up relatively well. In fact, we may not even get a correction in gold prices due to the seemingly universal agreement on a weakening U.S. dollar.

The Money Trap — Why Investment Money Has Nowhere to Turn

By | August 18, 2010

Investment money has a tendency to run to the place where it has the potential for the highest return.

In the late 1990s, we saw investment money run into tech stocks as the NASDAQ hit 5,000 (only at 2,209 today, 10 years later). In the mid-2000s, we saw money run to real estate as property prices boomed on interest rates that were low and easy-lending policies (residential property prices have … Read More

The Technical Argument for Much Higher Gold Prices

By | November 18, 2009

Over the last two years, it took five attempts for gold’s price to finally break above the psychological resistance at $1,000 per ounce. Though gold has been in a secular bull market in all currencies, much of the “credit” for the decisive breakout to the all-time high above $1,000 per ounce goes to the sliding U.S. dollar. In contrast, gold has yet to make any comparable breakouts to new all-time highs in the other two big currencies, the Euro and the Yen.

Hang Tight — The Bloodletting Isn’t Over

By | October 27, 2008

The news is pretty grim and there is a lot of liquidation going on in the equity market. I can imagine that the only people making any money in this market are those who are any good at trading S&P 500 Index futures. And the global coordination of the current financial market turmoil is a real sign that investors are expecting a serious, worldwide economic slowdown.

Investment risk remains very Read More

The Amazing Vanishing Dollar Act and Its Opportunity

By | February 14, 2008

It’s just after World War II and the strength of the U.S. military
reigns supreme around the world. With the end of the war, a
construction and manufacturing boom starts in the United States
that will last at least half a century.

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