Sure enough, the latest COT report shows commercial traders are net short while the large and small specs are net long the most gold amidst historic levels in open interest. What this entails is that the gold producers and bullion banks are likely offloading higher gold price contracts to unsuspecting funds and small traders at a blistering pace. My experience has been to never fade this type of development and I continue not to fade it. Yes gold still looks strong from a technical perspective at $765 but with the USDX hitting an all-time low and real core inflation much higher than most realize, then $765 on gold and $13.50 on silver is not really all that impressive imo. I continue to believe that the commercial entities will engineer a selloff in gold likely to coincide with a rally in the USDX, declining stock markets and a significant correction in Crude Oil prices...
December Gold (GCZ7)
- Thread starter Realist
- Start date
wow check out copper
Short bounce for the dollar, this time, IMO. My guess is by Wednesday it will be buried in dismal economic news that continues Thursday and Friday.
This has never happened in my experience. Gold futures have always traded in a contango (so forward/futures prices are higher than cash)
of course, sometimes with the electronic platforms when stops are hit and the EFP is low you can see spikes below cash prices. This is a very shortlived anomaly though and lasts only seconds if you ever see it
of course, sometimes with the electronic platforms when stops are hit and the EFP is low you can see spikes below cash prices. This is a very shortlived anomaly though and lasts only seconds if you ever see it
The latest correction in gold down to 745 yesterday was all but erased today and were right back up to 764 now. The seasonal correction in gold may have passed already imo. The dollar is looking very vulnerable once again and this continues to hold gold up. The demand that is being built up behind this move means something is coming. took a small long and then looking to add on any further dips when they come. 745 cash gold held up in a fashion that signals good support is established for now...