Gold Shorts are refusing to cover. It should be interesting to see if they finally get squeezed. If my selling 1/2 of my HM stake yesterday means anything, we're going to the moon real soon. Sorry, just had to throw a virgin into the volcano. Now the gold gods should be satisfied. :)
thestreet.com
Quick & Dirty
Not to give short-shrift to the market action today, but (like every picture) the numbers tell the story. A story which (like the song) remains the same: Rising rates + disappointing earnings = market decline.
Meanwhile, I couldn't help notice gold rose 1.2% to $322 per ounce today while the Philadelphia Stock Exchange Gold & Silver Index rose 5.2%. This following a lot of action for gold stocks in the options pits yesterday.
Heading into this week, many gold market participants were shocked (shocked!) to see the short position in gold little changed despite the European central banks big announcement on Sept. 26. For the week ended Oct. 5, the net short position in gold was 64,951 contracts vs. 62,196 for the week ended Sept. 28, according to the Commodity Futures Trading Commission commitment of traders' report.
"There's a lot of denial about the rally," said one gold market watcher. "Everybody who missed the move said 'I'm not going to book [shorts] now' and those who wanted to go long said 'I missed it.' "
Meanwhile, the rumor mill is spinning anew with tales of bullion banks facing big losses because of gold's recent upswing.
This story is a long way from over.
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