After witnessing a $40 decline in gold from Mid-April, it appears that gold could be on the verge of bottoming out right here and now. Several attempts to push GCQ7 under 650 have failed on numerous occasions which confirms the underlying demand and strength of the bull market in gold. Through a firmer dollar, huge CB selling and stronger global equity markets, gold has only managed to decline about $40 from the April high which is clearly bullish. As long as $647 holds on August gold, then we could actually begin to see gold move higher to reach the May '06 high. The fact remains that as long as cash gold holds $640 then the series of successive higher lows remains intact on the intermediate chart. This development confirms that the long term bull trend in well intact and strong demand remains apparent. I am positioned long GCQ7 as of today. After riding short for the past 6 weeks, the risk now appears to be on the upside...
The US dollar weakened considerably and the price of oil increased during this time... gold ONLY coming off $40 is bullish?
hopefullly you are right ... one "gold" expert quoted on kitco told people to SELL gold this week not sure of all his recent rec's on gold but I do remember he told folks to sell gold when it was in the low low $600's and soon had to reverse his prediction as gold rallied furiously against his call
The last time the commercials reduced their net short exposure by this much was back in January. The gold price then moved from a low of $603.00 to $692.50...
The commercials are big believers in seasonals and the seasonals according to http://www.seasonalcharts.com/ are about to bottom late June early July and they are uninterruptedly positive into October and beyond. js
gosh ... was that a typo ? what handle do you mean by tomm. ? $13 ,$14 or somewhere inbetween like $13.40 basis JULY 07 futures ?