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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: bearjones who wrote (78471)	4/29/2008 9:06:07 AM
From: Real Man	Read Replies (1) \| Respond to of 116555

Quite a bit of exuberance there, gold has to fall on physical demand as speculator longs are liquidated. The chain reaction was started by the bullion dealers, who got an upper hand thanks to IMF gold dumped on the market. Gold is in a correction. 321gold.com Also, weak seasonal physical demand at this time of the year. Expect a bottom, perhaps, in August. Maybe earlier (May?), given the monetary backdrop. Mining supply is likely to fall further, since oil stays high. The wild card is CB purchases against the IMF (US, actually) and European Central Bank selling. Another wild card is European selling. Another wild card is offloading physical gold from Crimex - they have much fewer gold than the shorts can possibly deliver into speculator long positions, should such delivery be requested.