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Strategies & Market Trends : YellowLegalPad

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From: John McCarthy	2/8/2006 8:43:34 PM
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DEZ .. Gold for April delivery closed down $1 at $553.80 an ounce on the New York Mercantile Exchange, after touching a low of $548.50. On Tuesday, the contract lost almost $20 an ounce to record its biggest ever one-day decline. Prices climbed close to $580 last Thursday, a level not seen since 1981. Traders said the steep fall suggested that the rush of buying that has propelled prices to repeated 25-year highs may have been exhausted, at least for now. Action Economics said a sharp yen rally had added to the momentum as it squeezed out Japanese and other yen-funded margin accounts from long gold positions. "The weakness in gold prices is reflective of a broader deleveraging of commodity long exposures," they said. "The sharp decline in gold has weakened the technical picture and should keep prices pressured over the near term." In the longer-term however, fundamentals -- rising global demand and generally constrained supply -- still remain bullish, they said. >>>>>>>>>>>>>>>>.. The above was written about 2:00 pm EST ..... Right now gold is headed up 7 dollars ..... How does the thinker of this logic know that the rise in the YEN killed off people who were short the YEN (makes sense) and this lead to a liquidation in gold i.e. what statistical data is this writer looking at ... marketwatch.com If a rising YEN caused this problem ... why would it kill off the momentum of gold beyond the time needed by new buyers to come in and replace the buyers that allegedly sold their gold positions to cover their short position in the yen .... why wouldn't new buyers show up immediately ....

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