Hey Don... the REAL reason gold is up this week is that PDG & ABX each announced there earnings {25% net earnings from hedging}. And each are forward sellers, and each need to boost the Gold price to deflect forward speculators. And since the GOLD spot, multiplies equity value, a purchase on the spot, and sold in the forward effects the XAU, and the TSE G&S indexs by 5 fold. So whne they both stop buying the spot, the pressure they put on the forwards will deteriate the spot price. In two weeks, they will be covering their positions, and spot will be at $270. Spot gold is forming a double top, and the futures are deteriating volatility accross the expirations. This trend will continue to Nov 20 or so, where it'll hit a new 18 year low.
It is the forward selling of Gold hedgers against spot prices that is actually holding up the Gold price. The long term trend for gold is still down. I've shared with a few, that the trend can be calculated based on exotic supply, which will come online as soon as Britian, or Germany lower rates. Talk on the street is that Germany may lower 0.50% in days. I was told Italy lowered today.
Some of the producer are reaching Tech levels of PE's |
