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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: John Paquet who wrote (41327)	9/28/1999 2:17:00 PM
From: Roebear	Read Replies (4) \| Respond to of 116764

John Paquet, Watched that spike on two different feeds, couldn't believe it! Frankly though, I don't like to see spikes like that in a gold bull, though I'm sure it gave some shorts religion. Comments on that spike anyone?? Roebear

To: John Paquet who wrote (41327)	9/28/1999 6:33:00 PM
From: goldsnow	Respond to of 116764

I am almost at a loss for words! At the risk of repeating myself, lets just say that even though I have been bullish on gold the last week or two, I never expected a rally of this magnitude to occur so quickly. Then again, that's what markets do, they surprise traders. However, hopefully you were positioned correctly and were able to bank some profits from the poor shorts as they scrambled to take cover today. Equities and the USD were lower, the CRB reached 1.5 year highs, and all the other metals also rallied. If you have been in a cave over the weekend, then you wouldn't know that 15 European central banks and the SNB announced that they would place a cap on the amount of future gold sales. The sales are capped at 2,000 metric tons over the next five years. Considering that these banks represent about 70% of the worlds gold reserves, you can see why this was the catalyst behind the rally. The threat of further central bank sales was largely responsible for keeping a lid on gold prices these last few months, and now the cat is out of the bag. Also, the IMF has had their revaluation plan officially endorsed, which means they won't be selling gold to finance third world debt relief. Is gold regaining favor as a financial instrument? To repeat myself...the tone is bullish, but as always, don't become too complacent and confident with your winners...protect what profits you may have. Technical indicators are very positive, and we are above averages. If you are long from the 262 area as we were on TradeScope, then you may want to take more profits on a portion of your position. Markets usually don't go straight up or down, so odds are there will be a correction almost as severe as the rally. If you wish, attempt to purchase calls when the market takes a breather. If you have calls, you may have seen them increase 10 or 20 fold these last few days...cash some out. What's next...who knows, but there is no reason why the market can't go higher, it just may need a breather first. investorlinks.com