Volatile Gold Settles Higher
What a day in the gold pits.Â Right from the opening of the COMEX pre-market prices began breaking lower as the daily raid commenced right on schedule.Â Â The problem was the bulls were lying in the weeds and sent the price back towards $1580 which needed to be defended.Â 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.Â Â 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.Â Gold again shrugged off Euro weakness, which broke down below the $1.30 level which makes today’s action all the more impressive.Â Days like today are big signals that market sentiment is turning.Â Watch for a push either tonight or tomorrow back towards $1600 during Asian trading.Â If buying continues to be strong in New York then momentum buying will begin round the clock.
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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