Alan Williamson
Alan Williamson
days dollar east few happens market middle next suspect unless
Unless something happens in the Middle East or the dollar has a significant move, then I suspect that the next few days we are just going to see the market drifting.
case equity funds gains gold investors local lock market markets months move positively prices recent recycling secure sought stock
Over recent months gold and equity prices have been positively correlated. This has particularly been the case in Japan, where investors have sought to lock in stock market gains by recycling funds into gold. With equity markets weakening, local investors sought to secure gains on gold and move into cash.
earlier expected figures gold impetus lost lower profit release taking trade upside
Gold lost some of its impetus with the release of lower than expected US trade figures and this prompted profit taking in gold. Earlier in the day gold's upside had also stalled.
belief dollar partly result strength
This is partly as a result of the belief that any dollar strength will be temporary,
caused energy higher pressures rise
rise in inflationary pressures caused by higher energy prices.
absorb begin funds happen imagine market weight
If the market can absorb such a weight of selling, then just imagine what will happen if the funds begin to reinstate long positions.
although bear further gold looks ruled sentiment swift towards trap turned
Sentiment towards gold has now turned markedly more bearish and further long liquidation looks likely, although the deterioration in sentiment has been so swift that a bear trap can not be ruled out.
continue direction happening lacks market seeing thin trading volumes
There is very little happening and we're seeing thin volumes today. The market lacks direction; it may continue trading sideways.
fight foolish sentiment trend
While sentiment is so strong, it would be foolish to fight the trend in prices.
brings direction fall hoping mind numbers seven votes wherever
Wherever the numbers fall, they fall. I am hoping they fall in my direction. Seven votes brings to mind that every vote does count.
broader gold held middle price range recent since stopped
Yesterday's sell-off has stopped the recent uptrend in its tracks, with the (gold) price now squarely back in the middle of the broader $535-$575 range that has held since the middle of January.
bullish considered factors gold risks
With many of the factors that were considered bullish for gold still in place, the risks for gold are weighted to the upside.
downside due net risk upside
There is much risk on the upside than the downside due to net long positions. There's more on the go for platinum.
add again fairly funds last metal outlook platinum positions sold toward year
The outlook for platinum is fairly positive. The funds aggressively sold off positions toward the end of last year and could add positions in platinum again and take the metal over $1,000/oz.