It was no surprise to me watching it last night, but Gold began moving higher with the re-opening of the markets and did not let up until the COMEX pre-market opened at 7:30 this morning, having added nearly $30 to the price and challenging the 200 day moving average.  Gold promptly ran into some selling pressure which took it back down to $1420, which looks to be forming up as a short-term base.

I would be looking for Gold to be trapped between $1420 and $1435 for the time being as the strongest bargain hunters have probably gotten their fill at these levels.  But, the price moving back up too far too fast as we approach the end of April would be indicative of even greater stress on the market than is being admitted to.

The GLD ETF continues to see money leak out of it at a steady rate and this continues to be trumpeted by the media as an indication of selling and that even the gold bugs have given up the cause.  But, anyone with one eye open and even a hint of skepticism in their soul knows that’s a bald-faced lie.  If anything Gold is being pulled out of the GLD ETF and used to cover other demand for Gold on the futures exchanges in New York and London.

Given that the amount of physical off take in Shanghai has been in excess of 1000 tons since the first of the year and supply has been tight all year that assessment is likely far closer to the truth than the idea that the average gold investor is throwing their bullion away discouraged.