That the market always tends to go for large known price levels where the stops of weak hands exist. And, digging deep they found that President Vladimir Putin promised to find Russian federal funds to assist repairs in a flooded region in Russia. And that he was reportedly ready to sign a decree that would sell gold and high quality diamonds to finance such repairs. Now, this story came out many hours before the Comex opened but was used as a rationale for today's activities on the floor. Well, in actuality, the move was technical.
Gold demand continues to set records.
Very impressive numbers but much as one would expect with the price of gold, during that period, quite near historic lows. Still, quite impressive and indicative perhaps of the future, even at these new price levelst. Please understand that I strongly believe that we have entered a secular bull market in gold for various reasons previously discussed in this newsletter. But, no market goes straight up and a bit of a retracement would only strengthen the bull cause. While I do favor the downside in gold here, I do not have the assurance of confidence to recommend a short position for all except day traders.