Volatile Gold Settles Higher
What a day in the gold pits. Right from the opening of the COMEX pre-market prices began breaking lower as the daily raid commenced right on schedule. The problem was the bulls were lying in the weeds and sent the price back towards $1580 which needed to be defended. It was until the opening of the equity markets at which point another bearish stop-loss raid occurred taking the price down to $1568 which again was met by even more buying as the hedge fund mo-mo-monkeys literally got their heads handed to them and gold spiked to $1584. Again, the bears pressed what has been stout resistance for days now pushing the price back towards $1575 on the COMEX close.
The tape painting must continue to occur in order to continue selling the snake oil of a fundamentally strong equity market rally.
Once the COMEX closed, however, the bulls took over and ground the price higher over the next three and a half hours to bring the price back to the $1584 resistance area, setting up what could be a very interesting series of trading sessions in Asia and Europe. Gold again shrugged off Euro weakness, which broke down below the $1.30 level which makes today’s action all the more impressive. Days like today are big signals that market sentiment is turning. Watch for a push either tonight or tomorrow back towards $1600 during Asian trading. If buying continues to be strong in New York then momentum buying will begin round the clock.