Gold is a currency. It is following Euro down. This may continue a while. I still think physical demand come in next week with Indian festivity , wedding season.
People are selling, de risking Scotland election today.
Too much headwind. Europe ,China, Japan all slowing. US$ rising. Industry overcapacity.
Looks like Euro is going to 1.20, Now 1.285. Maybe time to buy is Euro hit 1.20.
BHP cost $45. Chinese miners cost $90. Chinese port inventor down to nothing. Half Chinese mines already closed. Just a little longer the other half will shut. Happy days will be here again.
Bring it on please. I'm waiting for it forever. Going to load up for the Diwali, Wedding,Christmas ,Chinese New Year buying season.
I think Asia will buy gold tonight. They've came in every night. Europeans might do so too on Scots vote. Tomorrow morning unemployment claim. High US$ very damaging to jobs. A weak number gold goes back up Shorts should cover now.
I've also notice this. Very interesting gold goes down everyday, miners don't follow.
I've also noticed gold goes up everyday when Hong Kong market opens, Gold goes down when Comex opens. I think Asian demand is back. China central bank have came in bought gold every time gold drop to 1200. I think they are in the market now.
Jewelry demand still good. Year on year still growing. It is true there are no long lines people buying gold bars. Goldman Sach got everyone scared now so sentiment is extremely gloomy. But sentiment can change overnight. It is paper gold future selling driving price down.
We have 80,000 lawyers imbeciles running Washington. You can count on bad things happen. Pope Francis said today WW III has started piecemeal. Wars all over the globe. Washington is instigating national,religious, ehtnics groups killing each other.
Now they are telling us Sept 9 ~ 24 is inauspicious ,associated with death rituals. Not good time to buy gold.
Looks like the dark cloud will not lift just yet. Shorts will continue pressing their bet.
Its interesting watching GLD. Inventory has stabilized. Weak hands selling have been met by new buyers. Good sign. Central banks and now hedge funds have shorted 30,000 tons of the stuff. They have to cover, they have to keep price above production cost of miners. Many Chinese mines have already closed.
Tell us where gold itself is going short term. Elliott Wave.
One technician I know is saying $1226.
This got short sellers excited. I think its priced in...... Gold will rally after an initial dump. Sept to
Feb is all about physical demand. And Wall Street will start pumping.
Long suffering longs are taking this rally as chance to get out. Market sentiment is extremely gloomy. Not a single soul believe we can rally here.
Virtually all physical demand are in the September to February period. About 3000 tons. GS is a trader. Buy low sell high. Or Short high cover low. They don't stick to a position for years. They have to make a trading profit every quarter. I think they hang out that $1050 sign every time they want the market down. Thats all it is.
Have the longs threw in the towel? They have teams of psychiatrist to figur you out.
$1262 doesn't hold we will go 1240. Another important support .
Euro pessimism reached a bottom. Only 4% are bullish on Euro. Gold could reverse along with Euro.
$1262 is .618 retracement of the last rally to 1392. Line in the sand the day before non farm payroll tomorrow. I think the number will be lukewarm at best. High US$, end of summer , prior 3 month of heavy hiring, todays lackluster ADP number all point to disappointment. I think gold reversal is at hand. Whisper number is 250,000. Worst case scenario is gold stay flat. Physical buyers don't get the bargain, they will have to come in buy high.
$1262 will not hold. Short on any $5 ~10 bounce. Target $1242. Only one sees a reversal on Friday after non farm.
Peace is upon Ukraine by Friday..Putin. Maybe US$ could come back down again. Threat to Russia having to sell gold to raise cash for import is lessened.