Yahoo Finance: Gold on the Rebound: Is the Bottom Finally In?

Of all the investment opportunities that exist in the world, few can claim to have the devoted fan base that gold seems to enjoy. And yet, for all its appeal with the so-called gold bugs, this precious metal has nearly as many skeptics, who never pass up an opportunity to trash the virtues of owning expensive rock.

But somewhere in between these polarized factions exists a cadre of opportunists, free of any bias, who simply follow trend lines to determine on where prices are heading. Jonathan Krinsky, chief market technical analyst at Miller Tabak & Co, is one of them.

"From a price level perspective, oftentimes when you break down from a level, you retrace and then there's a lot of overhead supply that makes it difficult to push materially higher," he says in the attached video. "I think that's where we're at right now."

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Yahoo Finance: Sell the Gold Rally?

Gold is pushing higher again this morning, tacking on big gains for those intrepid souls who bought the most recent panic lows. The yellow metal is trading back over $1,300 an ounce, having gained just more than 10% since bottoming near $1,200 in late June.

The question for investors and speculators alike is if gold has at long last marked the end of a wrenching nearly two-year pullback from the 2011 highs over $1,900. Lee Munson of Portfolio LLC says any rally marks a chance to make a graceful exit from their positions.

"Investors are confusing the fact that [gold] holds its value super long, hundred-year periods of time versus inflation versus making actual growth," Munson says in the attached video. "It just holds its value. That's not a reason to hold anything."

Of course the hardcore buy and hold gold players will lose their minds over Munson's characterization. Buyers of the SPDR Gold Trust ETF (GLD) have been handsomely rewarded over the last eight years, easily outperforming the major market indices. Munson is quick to point out that "long-term" doesn't mean buying the lowest point of the last decade. It means holding gold over decades.

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Yahoo Finance: The Trade: Dump the Gold Miners

Today marks the beginning of a new segment on Breakout called "The Trade" where we don't just talk about markets, but tell you the best way to play the day's hottest stories. All opinions are my own. It isn't advice on what to do with your portfolio, your money is your own. The Trade is about explaining the facts at hand and telling you what I'd do with my personal portfolio.

Today's Trade: Market Vector's Gold Miner ETF (GDX), commonly referred to as its ticker symbol. The GDX is designed to trade in line with the fortunes of the most prominent gold mining companies in the world. Companies like Barrick Gold (ABX), Goldcorp (GG) and Newmont (NEM) are three of the largest component companies.

Now that you know what it is here's the story, as discussed with Yahoo! Finance senior columnist Michael Santoli in the attached video. The GDX is more than 5% higher today driven by a more than 2.5% rally in gold prices. The ostensible driver of the gold rally is Ben Bernanke's comments regarding the future of interest rates. As has been the case for the last 18-months, gold needs a specific catalyst to justify a rally and no excuse at all to plunge.

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Yahoo Finance: Gold No Longer a Safe Haven, Strategist Says

The price of spot gold rose to its highest level in seven days Tuesday, to $1,260 an ounce, but that doesn’t mean much to Yoni Jacobs, chief investment strategist at Chart Prophet Capital.

Jacobs said the reasons for gold’s being considered a safe haven—emerging markets, gold mining stocks, the dollar and inflation—are long gone.

For example, conventional thinking about the relationship between gold prices and emerging markets is that, as wealth grows, consumers will have more money to buy gold.

“The problem is, if you just paid attention to the stock prices or the stock markets of those countries, you’d see that they’re slowing down,” Jacobs said. “The S&P 500 is up 22 percent in the past year, whereas the Shanghai Index in China is up only 4 percent in the same period."

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Yahoo Finance: Gold: Respect the Range from $1,350 – $1,422 Says Kilburg

Dirty Little Secret: Picking winners is relatively easy compared to controlling losses. Once an investment has racked up gains for an investor it's extremely difficult to sell. When a position has been a loser since day 1 it can be even harder to get rid of it, if only because doing so is tantamount to confession of defeat.

Such has been the case with gold. Over the last decade an investment in the SPDR Gold Trust ETF (GLD) has risen 200% compared to about 50% for the Dow Jones Industrial Average (^DJI). What really set the hook for gold lovers were the five years of relative performance of the GLD over the five years ending at gold's peak in September of 2011. Over that terrifying period of global economic history gold rose 200% while the Dow was virtually flat.

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Yahoo Finance: Gold Skeptics Have Peaked but Gold Prices Haven’t: Paul Schatz

It didn't take much to bring beleaguered gold traders back from the brink. Jitters in Japan and fear over the Fed have stoked a reversal in gold that follows a seven month, 25% slump.

While the most widely traded metal is still only about $25 away from the two and a half year low it hit in April, Paul Schatz, president of Heritage Capital, thinks there's currently a lot more upside than downside in gold.

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Yahoo Finance: Gold ETFs Are Liquidating By the Ton

An ounce of gold, often represented by a single American Eagle coin, is a fairly easy thing to visualize. Even a 400 ounce gold bar, like the ones held at Fort Knox, is a fairly fathomable concept. But when you try to get your head around just how much of the metal an ETF like the SPRD Gold Shares (GLD) owns, it can get a little daunting. And the same is true when you try to track how much they've had to sell as the price of gold slips to a 2-1/2 year low.

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Yahoo Finance: Jim Rogers on Gold: Continues to Have a Long Overdue Correction

It’s been a rough week for gold. Prices fell for a seventh day in a row Friday morning, marking the worst slump since March 2009, according to Bloomberg Businessweek. By mid-morning gold futures were trading at $1,362 an ounce, down almost 2% from the previous close and 28% from the September 2011 high of $1,920.

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