Gold Rush

I bought some Gold last week  after I said I would but I really did not expect the ferocity of last Friday’s move.

https://tradehaven.net/market/fx/good-news-or-bad-news-bad-news-for-em/

It really gives us something to think about as open interest picks up again.

China is losing no time in the recent sell off.

“Acquisitions by China’s gold mining companies reached a record this year as the metal’s steepest quarterly drop in more than nine decades slashes mine values and sidelines Western competitors laden with debt. ” Source : Bloomberg
http://www.bloomberg.com/news/2013-08-20/china-gold-mine-deals-at-record-after-price-plunge-commodities.html

The gold rush appears to be starting again as the gold in banks’ coffers dwindle and JP Morgan sells its gold vault in New York.

http://www.zerohedge.com/news/2013-08-18/jpmorgan-selling-building-houses-its-gold-vault

So we shall leave gold to blossom by itself with silly headlines like Gold rallies on fall in US home sales (FT).

Like I said last week, we should see 1425, the previous top in May, with the main worry right now in Gold Swap Dealers, i.e. the relatively larger traders and big banks, showing renewed shorts that were the precursor to the coordinated crash in April.

 

A full scale attack of April’s magnitude should be more closely scrutinised than it was then, and yet not unimaginable to contemplate after our experience.