Monday, February 11, 2008


What do you think we'll see first, $800/oz. or $1000/oz. for the price of gold? Personally I believe the latter. Here's an article telling of the dramatic reaction the market had when it tested the $890 range last week.
" counter-attacked..."In the three trading days since Feb. 5, it reversed and stormed upward by $U.S. 32.50, closing (spot future basis) on Friday, Feb.8 $918.40 ... the gold price fell below both 10 and 20-day moving averages this week only to turn right around and move above them again by the end of the week. The shorter term moving average remains above its longer term counterpart."
Why? Close observers of gold futures' noted that "open interest"...rose as gold was going down and fell (sharply) as it recovered. This suggests short sellers being routed."

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