Gold:
June 6th, 2:06am EST UPDATE: A bit over three hours have passed since I posted and gold is taking off to the upside, yen is appreciating and GDX trading in Australia is catching a significant bid while it was down 0.09% during Monday's New York session. All of this looks fantastic. For further explanation if you are reading this somewhere other than my Facebook wall, click on my name to see the original post to see the charts and data I added under the comment section on the original post.
On May 12th I called the bottom in silver and nailed it. I took some arrows on that call, but I was right. I frequently get intermediate-term tops wrong. But I often nail bottoms:
-- Eric
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Original:
Resistance in the mid $1260s gold has been breached and is now support. The traders on the Comex that chase paper and are informed by technical analysis are going to love this picture. The cartel is fubar and must resort to a "managed retreat," a term coined by GATA's Bill Murphy.
Gold has been kicking off higher lows while most of the Western financial world has been sleeping, viewing the precious metals as a bear trap. It's anything but ... and as I have been saying for weeks, the so-called summer doldrums is not going to happen this year. Doc and I recorded a pretty good podcast last Friday addressing this: . I'll have Bill Murphy on in a couple of weeks; if you'd like me to pose a question to Bill, post in the comment section below and we'll try to fit it in. Be sure to check out the new GATA Facebook group, too:
Miners should start to follow, soon. Normally, they lead sector moves but they were blown to smithereens by initial manipulation; when metals wouldn't break earlier this year, the cartel went after miners. Then came the lunacy of GDXJ/JNUG performing so well that 'too much' fund flows came into the GDXJ/JNUG universe and that resulting in sending miners down still further, creating a situation that muted the normal "leading" move that miners would normally demonstrate. This is why miners have failed to confirm. That none-sense is about to end as the GDXJ/JNUG re-balancing has largely already been priced in given all the front running that hedge funds other others executed in advance of the re-balancing. Very few people expect gold to blast into the $1,300+ range in a few weeks. We're going there - soon. Getting over $1,300 will be a pain in the neck as round numbers are always defended by the friends of the fiat paradigm. But $1,300 will fall...
Eric Dubin |
