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Key resistance level of $262 was irreversibly smashed last week, due to the BOE's gold auction being oversubscribed. The shorts are therefore buying, in a panic, to cover their positions, or cut their losses, and there is not enough physical gold to do so, without paying a premium. Looks good on them. Next levels of resistance are at $290, then $317, then who knows how high the yellow metal could go. Didn't hurt, as well, that Barrons wrote an article on the weekend predicting a gold breakout to $300 by year end, due to the strength of the yen, insomuch that most of the real demand for gold is in Japan. Regards. |
