Posted On: Friday, August 10, 2007
Gold and Dollar Market Summary
Author: Dan Norcini
Dearr CIGAs,
In reference to the following charts, I have included a few comments about this Friday’s Commitments of Traders report for gold, as is my custom........
.....Thursday of this week we witnessed gold getting hammered down some $13 or so on very strong volume of 120,026 contracts. The open interest dipped only slightly however which means that while there were plenty of longs getting taken out as the downside stops were run, there were also plenty of new positions being put on, both longs and shorts. After today’s strong reversal back to the upside, you can rest assured that yesterday’s opportunistic sellers were today’s panicked buyers. That strong short covering ran the market up nearly $15 at one point, totally erasing yesterday’s big losses. However, once again as we have been accustomed to seeing, strong selling once again “miraculously” appeared above that $686 level in December gold sending a “Do Not Pass Go” signal to short term specs who then unloaded their new longs. The result was that the blocking sellers managed to take gold down nearly $6.00 off of its best level for the day.......
full story: http://www.jsmineset.com/ARhome.asp...002&T_ARID=5059
linar