Yay, earn USD 2500 today on my Gold trade, buying in at 1631 and selling at 1656...

1630 was an area of support/resistance, one of the support points in Gold when it plummeted last month, also served as a resistance when Gold recovered from 1535 at the low. Also based on the movement of Gold the last couple of weeks...the trading range was always less than 50 dollars...so at around that point you would expect a rebound...

No, I trade with a local broker in Singapore...

100 oz contract.....I usually don't hold my position overnight and never longer than a week...and put tight stops to limit my losses if the direction goes against me...

Never trade more than you can afford to lose..that being said, you don't have to trade as large a volume as me, you can start with the mini contracts or trade on the spot markets, you can trade as low as 1oz..

What will this news do for the Gold/Silver markets, especially with the large short positions that JP Morgan holds?

http://www.reuters.com/article/2011/10/18/...E79H0P720111018

(Reuters) - The United States pushed through its toughest measures yet to curtail speculation in commodity markets in a tight vote on Tuesday, likely shifting the focus of a fierce four-year debate from the regulators to the courts.

In a measure decried by Wall Street and trading companies as a misguided political attempt to cap soaring oil and grain prices, the Commodity Futures Trading Commission voted 3-2 to approve "position limits" that will cap the number of futures and swaps contracts that any single trader can hold.

The rule, which was being modified until the last minute even after months of intense review, offers some relief for the industry, relenting on several contentious provisions, as expected.

But that will do little to temper frustration over a plan that could force banks like Morgan Stanley and traders including grains giant Cargill to scale back business, and could stanch the flow of financial capital into commodities.

The divisiveness was stark from the opening, making a legal challenge potentially more likely. That would be another hurdle for CFTC Chairman Gary Gensler, who is struggling against emboldened Republicans and a hostile Wall Street to put in place the rules required by recent financial reforms.

Swing vote Michael Dunn, a Democrat whose term has already expired, said he would follow the Dodd-Frank financial reform law but blasted the limits as a dangerous distraction from bigger issues. Dunn can remain through the end of 2012 until a replacement is confirmed by the Senate.

"Position limits are a sideshow that has unnecessarily diverted human and fiscal resources away from actions to prevent another financial crisis," Dunn said. "At worst the limits may harm the very markets they are intended to protect" by making prices more volatile and hedging more difficult.

The decision also failed to appease those who had called for tougher limits, such as British charity Oxfam and Senator Bernie Sanders, long a vocal proponent of tougher limits.

"The CFTC has moved a step forward, but much more has to be done and I intend to play an active role in that process," Sanders said in a statement.

CHALLENGE LOOMS

As expected, the commission's two Democrats, Dunn and Bart Chilton, voted with Gensler, while Republicans Jill Sommers and Scott O'Malia opposed the measure. O'Malia said the agency had overreached its mandate and echoed the industry's argument that there was no "empirical evidence" to substantiate the rule.

"We went beyond the statute" by doing things like narrowing the bona fide hedge exemption, Sommers told Reuters. "Those are the things that people can use for a legal challenge."

The CFTC has never faced a lawsuit over one of its rules, according to an agency spokesman.

A lack of proof that excessive speculation leads to high prices is at the heart of the issue. Without evidence of any damage wrought by failing to limit traders, it may be difficult to demonstrate the net benefit of the measure.

Dozens of academic, government and bank studies on the subject have differed on whether speculators -- in particular the institutional investors who have poured some $300 billion into commodity markets over the past decade -- influence prices or whether prices simply respond to market conditions.

If they sell now then lose money la...that's what will happen...what's the big deal?

Quinn already give up on the gold investment thread already...no need to talk about him anymore..

What a ridiculous statement, 0.40c dip, you call it a crash? 40c is just a blip, don't tell me if Silver drop 40c then it must be a manipulation? Sigh this "manipulation" phrase has been used to death again and again without knowing the real meaning.

Wow, one of the veterans. What got you into gold? Did you foresee back in 2002 regarding the debt and paper currency crisis we were going to have? I only learnt about it in 2008..

Used to be, Silver was 8 dollars. Used to be Silver was less than 20 dollars. Even when Silver was less than 20 dollars it made over 1 dollar moves. Now Silver is over 30 dollars, what is 40 cents? What is 80 cents? 40 cents is less than 1.5%, 80 cents is less than 3%! So 40 cents is just a small movement, completely irrelevant to the big picture.

This post has been edited by eXTaTine: Oct 21 2011, 10:23 AM

So you mean every time silver drops it is market manipulation? Every asset rises and falls, how can you claim market manipulation unless you have a good reason to believe so? Assuming even if there was market manipulation, it does not mean every dip is due to market manipulation, it would more likely be the normal market movement. I already addressed this before but you ignored it.

Hmm, shall I just put your post here for reference?

Erm, did you consider that it could be normal market volatility? Did you consider the fact that Silver is extremely volatile? Did you consider the fact that Silver has been range bound on the top at 33dollars and 28 at the bottom lately, and that the drop from Tuesday was due to the fact that silver failed to break through resistance? It wasn't only silver that dropped, gold and a whole bunch of metals dropped, but to you, it is manipulation.

One forummer here said that 40c/80c used to be a big movement. Excuse me, since when? 10 years ago when silver was 5 dollars? Let me check to see when the daily range was less then 80c this year. Wait a min, it's every single trading day, it has exceeded it!

And nowhere did I say that Silver was not manipulated, I just said you can't just cry foul every single time. Do you think the guys at JPM have nothing better to do than to plot to crash the silver market every single day? No, if they wanted to crash it, they would do it during major events to prevent the spike, not when the market is basically a snooze fest and the eurozone news is basically at a stalemate.

This post has been edited by eXTaTine: Oct 22 2011, 04:59 PM

When will gold rebound again? When attention shifts to the US debt crisis, and it will really fly when they finally announce QE3. For the moment the US dollar is being regarded as a safe haven play. When the US debt crisis starts being talked about, then the safe haven play will shift once again to Gold.

This post has been edited by eXTaTine: Oct 23 2011, 11:22 PM

I expect a correction soon, either today or tomorrow.

This post has been edited by eXTaTine: Oct 25 2011, 09:26 AM

My gut feeling...usually profit taking occurs after a 2-3 days rally, and I see no market event that will continue the rally, so there should be a profit taking session, probably today.

No such thing as 100% sure when it comes to trading la...

Lol trading using Gold Savings account is a very bad idea...with such a large spread its hard to win.

Gold is flying!!

This post has been edited by eXTaTine: Oct 26 2011, 10:33 PM

I suppose there should be a correction to the 1600s sometime in the future..