Gold Ends Strong, Still Off $10 for the Week

By Tom Luongo in Gold and Oil News | October 26, 2012 23:08 | Tags: , , , ,

The evening rise in Gold was cut short early last night around midnight EST where data coming out of Europe spooked the market back down towards $1700 and for the third time in three days, the level held.  U.S. GDP data sent the metal higher on the COMEX open and it again took a run at $1720 per ounce and was once-again blocked from any further advance.  The price bled lower into the Globex close and ended the week down $10.50 to $1711.85 on the December contract.

With the fireworks in the equity markets continuing during one of the worst earnings seasons in recent memory, everything is under pressure.  U.S. Treasuries were headed for another ugly day of selling but everything turned after noon on Friday and miraculously, stock and bonds were both rallying hard.  Stability will be maintained even if everyone knows it’s a lie.  the best advice I give is to ignore the day-to-day wiggles – remember Don’t Fight the Fed, they want you to stop caring – and let them create whatever numbers they need to so that the charade can last just a little bit longer.  So, tune out and buy what gold to protect yourself you can because there are no fundamentals left.

Even the German High Court knows this which is why they want to audit Germany’s gold, even though the Bundesbank trusts their masters partners at the Federal Reserve that the gold hasn’t been leased out.  Remember if you don’t hold it in your hands you don’t own it.

For those still trading Gold, a rally back towards $1730-50 by the end of the month would be a very good sign that things will continue to stabilize here for another assault on $1800.

 

Tom Luongo – who has written posts on "LiveWire" Stock Market blog..
Tom is a professional chemist and self-taught economist who has been following and trading stocks for nearly 12 years. He has no formal ties to the financial industry and considers that an asset in his analysis of the interplay between monetary policy and capital markets.

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