GOLD WILL CONTINUE TO RALLY ON FRIDAY IN EUROPE...possibly even touching $290 spot. (Kaplan's comments today)
Analysts' comments have changed from strongly pessimistic to strongly confused, with few predicting that the rally will continue (this is the denial stage), and indicating that a much sharper upward move is soon approaching. Gold is now trading about 5.4% above its bottom of $270.50 on Friday morning, and is establishing a strong, though admittedly short-term, intraday trading pattern, with dips followed by recoveries and a surge to new highs. Investors are becoming desperate for alternative investments and there are few others that have the liquidity, potential for double-digit gain, and non-correlating behavior of gold mining shares.
GOLD WILL CONTINUE TO RALLY ON FRIDAY IN EUROPE as Continental and London traders went home on Thursday expecting gold to close slightly lower, and discovered late in the evening (or will found out in a shock on Friday morning!), that gold rallied. With the weekend approaching, including Labor Day in the U.S., these traders will be desperate to square their books, and the price is likely to be pushed higher, possibly even touching $290 spot.
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