John, I agree .... The key word is that the politicians
"think" they can reduce the deficit by selling/reevaluate gold to
beautify the balance sheet now. There are intelligent
CBs (aka German's) out there who are dead against such effort.
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Today's bridge news:
New York--Jly 21--COMEX Aug gold settled down $3.40 at $326.20 per ounce on profit-taking from the $10.90 rally Thursday
and Friday, backfilling a newly bullish--or less bearish--market. Other precious metals were mixed, with COMEX Sep silver
settling down 1.2 cents at $4.258 per oz, NYMEX Oct platinum settling up 20c at $399.50 per oz and Sep palladium settling up
$4.95 at $171.30 per oz. * * *
Gold traded lower throughout the session on profit-taking after the unexpected short-covering rally last week. Later in the day, the
metal was pressured as well by the rollover of the Aug contract to the Oct or Dec contracts.
"There were very heavy rollovers," said George Gero of Prudential Securities. "You've got 100,000 contracts that need to be
rolled over in the next week. If you're long Aug gold, you've got to get out of those positions. If you're short, you're better off, since
the market isn't running away from you."
Gold traded quietly despite the relatively large drop in prices, one trader said. "Maybe some of the shorts who got out Friday put
them back on," the trader said. "But it was a quiet trading day. The metals were all pretty quiet." |
