GOLD 0.51% $1,391.7 gold futures

some reasons for a gold run

  1. 3,360 Posts.
    From Adrian Douglas and Le Met Cafe

    Bill,
    This is just a quick alert as I am travelling but the Market Force Analysis of the USD is indicating that the current bear market rally will end before November 10. This is very interesting because the gold MFA is currently at a low and giving signs of a turn which would indicate a coming gold rally.

    Many other things are supporting a new gold upleg.

    Goldman Sachs is now NET LONG gold on TOCOM after being heavily net short for the better part of 2 ½ years.
    All the traditional gold shorts on the TOCOM have reduced their net shorts to very low levels.
    The FOMC meeting is Oct 28-29 when they will very likely drop FED funds rate by 0.5%.
    There is a massive build up of COMEX gold CALL options in the DEC contract that outnumber PUTS by 1.7 to 1. The option expiry is Nov 20.
    There are rumors of such a high delivery demand in the DEC COMEX contract that there is a high risk of default.
    There is a G8 summit in New York Nov 15 to discuss plans to reform the international financial/monetary system; references are even being made to having the discipline of Bretton Woods. What ever the outcome it is sure that the dollar will not retain its supremacy. That will mean a lot of countries are holding too many dollars!
    It seems that all the stars are aligned! The coming 3 weeks are highly likely to see a top in the dollar and a strong rally in the precious metals which may well be faster and stronger than any we have seen so far.
    Cheers
    Adrian

 
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