Gold Rebounds on Strong Asian Buying
After Gold touched $1700 per ounce yesterday it immediately caught a bid and pushed higher. After the New York markets closed there was the usual measured buying back of shorts put on during the day during Asian trading which looked like it would take gold back to around $1708 and hold there for today where another assault on sanity would commence during the New York sessions.
That was not the case however as Gold broke up and away toward $1714 on the December contract which had to be beaten back before the European open. And the buying was too strong even for that and after Europe opened there was a rush towards $1720 and the capping action could commence in earnest.
Almost without fail in the past 4 years it has been better than expected strength during the Asian markets that signals the next wave of the Gold bull market is getting ready to commence. The buying in Asia begins to piggy-back on the short covering from the western operators and all that can happen then is a period of damage control during European and COMEX trading. This is where the disinformation campaign begins in the western press, particularly CNBC and Reuters along with whatever economic data the U.S. government puts out to create the reality they want people to believe.
Once Asian buying becomes too strong to hold back during the COMEX and the Globex that’s when you see the bullion banks flip to the long side of the market and gold goes up daily for a while during New York hours. Once the rally fizzles and the capping is stronger than the buying the whole process starts all over again. Gold drifted lower after being capped at $1718-20 and opened up in Sydney at $1713.55 for December delivery.