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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (45534)	10/20/2009 7:35:23 PM
From: LoneClone	Read Replies (1) \| Respond to of 193918

Bullion: Speculation driving up gold price 2009-10-20 09:40:00 commodityonline.com LONDON (Commodity Online): There is still a clear disparity between speculative activity in the gold market and what we observe in the physical market. Speculative activity remains high on the back of dollar weakness. Speculative length for gold continues to rise. According to CFTC data, non-commercial long positions have jumped 69 tonnes, from a week earlier, to 982.6 tonnes. At the same time, the noncommercial short position has risen only 1 tonne, to 80 tonnes. This leaves the net non-commercial position at 902.6 tonnes. This position is more than double the longs we have seen in April when the equity markets started their recovery, and a massive 735 tonnes higher than the lows reached in November last year. Net speculative length now accounts for 42% of total open interest — the highest level in at least two years. The CFTC figures show a very bullish speculative market. However, over the past two weeks, we continued to witness a very weak physical market (refer to Commodities Daily of 14 October 2009). We continue to see scrap flowing to the market at current price levels. As a result, we believe gold will find it difficult to move higher. A gold price closer to $1,030 might see physical buying return. While we still believe gold could reach $1,100 in Q4:09, we are increasingly seeing strong resistance from the physical market. For the first time in many weeks, we believe that there should be a price correction towards $1,020-1,030 before the gold price will move higher again. Buy dips. Courtesy: Commodities Research, Standard Bank