It was quite the whacky day watching gold bust through $1000 and then the shorts/bears/conspiracists or whoeever you want to call them,slowly and methodically played rope-a-dope in pure gold cartel style working the price down step by step,deflating the goldbugs balloon once again. It was inevitable that $1000 would be breached by shear emotion but now we have a classic setup for gold to be once again denied any solid footing above this critical threshold.
There are a couple of caveats in all of this. As John Nadler on Kitco pointed out,there is a 600 tonne long position. How long will they stick around with a full load if gold can't clearly bust through and show some real support above $1000 ? That will be critical.
And number two, there was a comment by GFMS yesterday that there were some "clumpy" trades that possibly had something to do with this latest push to a grand.
But what is most interesting is Barrick,the Bady Boy/cartel-related gold company, released news after the bell that they are eliminating all their hedges as they see gold going much higher but in the process will take a $5 billion write down.
You have to think if this was not the real deal for gold to head up higher then why would the bad ass of the gold bizz do such a thing ? Not to say we may not pullback here but if we do,it will be time to reload. My spidey senses tell me it is gold's time to shine,not just because of all the US debt,but because the hedge funds have run out of big move style plays. With the S&P maxed out there isn't many games left in town and with this Barrick news it only solidifies the next move up is not "if" but "when".
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