December Gold (GCZ7)

So in the very short term, 785 on gold and 14.20 on silver is serving as support as physical buying interest is occurring at these levels. With the DX now breaking under 77 and the XEU well over 1.44 now, the metals are continuing to advance higher. An unexpected cut by the Fed of 50bps would likely send the entire commodities complex soaring much higher. Personally, I believe that gold, silver and platinum will continue to move higher as demand is driven not just from the action in the USDX. A consolidation from higher levels towards the end of next month would be ideal before gold stages its assault on the 9 handle...
 
Well, the Dollar continues to hit the skids here about 45 min. after the FOMC decision was made. December gold is now trading over 800 and SIZ is now over 14.60. Yesterdays pullback was likely a shakedown. Those still holding or who added are likely to be rewarded in the coming days, weeks and longer. Tommorrow also marks a historically strong day for bullion prices as the Indian festival season kicks off and many buyers there wait until 11/1 as it is a very auspicious day to purchase gold. It is also the start of the quarter for many CTA and Hedge funds and any liquidations made from the past week in the metals complex are likely be reversed in the days ahead. The 8 handle on the active gold contract is sure to attract more attention so I would not want to be caught short here...
 
hey i got a question, i was watching ecbot gold today for a few hours before class and it seemed to go nuts, it move some 11 dollars in a few minutes or so around 11:30 here pacific time, what causes such a dramatic movment? the dom was going balistic, number bouncing around like mad!

thank you
 
You should have been watching cbot mini gold YGZ after the fed announcement. The price dropped $24 for 30 seconds than came right back up. 400 contracts were sold off, at market I assume.

I tried to buy in at the bottom but it was moving too fast for limit orders and the ask was still in the 790s.

Someone picked up some contracts dirt cheap.
 
Quote from melee:

hey i got a question, i was watching ecbot gold today for a few hours before class and it seemed to go nuts, it move some 11 dollars in a few minutes or so around 11:30 here pacific time, what causes such a dramatic movment? the dom was going balistic, number bouncing around like mad!

thank you
More...

Most every market traded in the US went haywire for about a 20 minute period following the Fed decision. Trading was very erratic and this is why it is important to just sit tight during these times. Traders can get whipsawed and suffer drawdowns if one is actively trying to trade their metals positions. In my view, right now its best to set stops in the appropriate areas and to just stay in position. Gold is within spitting distance from trading at 800 on the cash market and is aiming toward 850.
 
I wonder when some of these hedged miners are going to have to put up more cash to cover margins....

remember the Hunt silver hayride buried some silver miners because they didnt have the credit line to cover.....

looking for one of the classic $50 up days in gold to uncover some weak miners that have to confess.........

another question is central bankers that lent truckloads of gold to those of 20 to 1 leverage...

makes getting up early in the morning a worthwhile effort just to see if any corpses show up on the roadside....
 
Even with the DOW down more than 370 points, gold is trading about $4 down from yesterday's close. It would appear that $800 could still be on tap before tomorrow's NY close. Silver got whacked early on (as usual) but recovered most of the losses as dealers saw 14 as nearby support holding. I am a bit more inclined to hold gold over silver right now since stops are pinned a bit tighter due to greater open interest. It would also appear that platinum prices are holding over 1440 as well so there could be a bid under PLF8 as well established...
 
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