In a continuation of Friday’s action in the Gold (AMEX:GLD) and Silver (AMEX:SLV) pits, the metals spent all of Sunday evening in Asia and Europe as well as the entire COMEX session trading in a very tight range with bulls unwilling to take prices higher and the bears unable to break prices lower. This stasis held for more than two full trading days after the Federal Reserve’s announcement last Thursday of open-ended, forever-war-style, QE, until the beginning of the Globex session in New York where prices fell back slightly.
Gold closed the afternoon down $9 over Friday’s close at $1761.95 on the December contract while Silver ended the afternoon down $0.46 to $34.27. This movement was tracked all around as the Euro ran into a wall at $1.31 and West Texas Intermediate Crude followed suit. From here on out I would ignore the dollar price for oil but rather look at the price in terms of Gold as Gold is reasserting itself as the only real money worth building a monetary system on in the face of profligate central banks.
After the run that the metals have been on taking a breather before making an assault on $1800 in Gold and $35.50 in Silver is constructive from a bull’s perspective. The bears are trapped here and if they don’t get out of their positions soon they will have to cover at higher prices soon. A $9 correction in Gold after a $250 run is nothing and if more selling is not uncovered soon we can see a disorderly market very soon.Previous Post » Microsoft to Launch Windows Phone 8 in China Before Year End