Thursday, August 5, 2010


Pushing gold north and pushing equities south. China told the cabal to stop their shenanigans and stocks are pausing to drag in some shorts. That is the game...enjoy.
Oil could still be climbing to 85 so be careful adding but DTO should be tasty today.

Gold may gain in New York for a seventh day on speculation that a weakening dollar will spur demand for bullion as an alternative investment.

The metal has climbed this week as China unveiled plans to relax trading rules for bullion and the dollar on Aug. 3 slipped to a three-month low against the euro. The U.S. currency today fell as much as 0.5 percent. A seven-day climb for gold, which usually moves inversely to the greenback, would be the longest winning streak since November.

“We are seeing resurgent interest from the investor community,” said Andrey Kryuchenkov, an analyst at VTB Capital in London. Prices have been “benefiting from a tumbling dollar and a rebound in riskier assets.”

Gold futures for December delivery added $3.20, or 0.3 percent, to $1,199.10 an ounce at 8:21 a.m. the Comex in New York. The metal for immediate delivery in London was 0.2 percent higher at $1,196.90.

Still, “interest from Asian buyers is likely to ease in the very short term, as prices have significantly recovered from July’s lows,” Kryuchenkov said.

Bullion fell to $1,195.50 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from $1,199.50 at yesterday’s afternoon fixing. Futures are headed for the first weekly advance in a month, taking this year’s gain to 9.5 percent.

Access to Trading

China, the world’s biggest gold producer and second-largest buyer after India, said on Aug. 3 it would let more banks import and export bullion and allow foreign companies more access to trading.

“Gold may take a breather before continuing on its longer- term trend, underpinned by strong demand from India and China,” said Ong Yi Ling, an analyst with Phillip Futures Pte.

Bullion has slumped 5.3 percent since reaching a record $1,266.50 an ounce on June 21 on reduced European financial turmoil and on signs of a global economic rebound. The European Central Bank and the Bank of England both kept their benchmark interest rates at record-low levels today. ECB President Jean- Claude Trichet is holding a press conference. --bloomberg


  1. kli,

    ATPG short squeeze at $9 turned out to be a nice one!

  2. rotated out of last of sgy into nbr this am SGG looks good......

  3. Congrats to those who played ARNA short squeeze from $3!

  4. nice move on NGD. Looking to grab some GRS at 5.90

    Breadth and AD line negative

  5. With the lousy unemployment numbers we could see an end of day sell off ahead of tomorrows jobs number. 1107 should hold

  6. The hold above 1125 surprised me. Not sure about tomorrow, but looking for alot of chop...unless unemployment number is strong one way or another. No trading for me today...hope everyone did well.

  7. oops, meant jobs number, unemployment was today, duh. No. Car. one of 5 states getting fed money to pay people's mortgages outright. Hmmm, they are getting awfully desperate.