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Politics : Dutch Central Bank Sale Announcement Imminent?
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To: sea_urchin who wrote (7185)8/17/1999 7:05:00 PM
From: Rarebird  Read Replies (2) of 81164
 
< What do you expect from the XAU? >

First of all, Searle, I wasn't very impressed by today's rally at all. It started off with investors getting scared as the S@P and Nasdaq began to sell off late this morning. So some of them flocked into Gold and Gold Shares. That part is good because Gold is still viewed by many as a safe haven, in contrast to what the Grizzly Gold Bears say. When the S@P and Nasdaq came back in the afternoon and rallied, the shorts tried to bring the XAU down. They failed and you had a nice little short covering rally at the close.

I don't think there is enough buying power at this time to push the XAU to fill that gap from May 7. I'd like to see more backing and filling and have the XAU defend itself admirably against the shorts for another week or so before it makes its move. There is a lot of technical resistance within the 72.3-73.85 level. The XAU will have to be in real high gear to break through that. I wouldn't rush it. It's better to make your move when your at your strongest. Let this bear market rally in US stocks and bonds play itself out first and fizzle out. After this rally fizzles out, their will be more money available to push the XAU considerably higher.

Let the XAU continue to defend its most recent gains against the short sellers. That's a good first step here. As a short seller myself, let me tell you many short sellers are a tenacious breed and they won't give up easily. Short sellers always go back to the well that quenches their thirst and feeds them.

The XAU will rally and fill that gap soon enough if it continues to retaliate and fire back against the short sellers.
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