Well, this is certainly an encouraging start to the week, wouldn't you say?
I wasn't planning an additional post but the action overnight and this morning merits your attention.
Last Monday, I mentioned that both gold and silver had "room to rally". For a guy whose trolls claim is inaccurate 99% of the time, I've been doing OK lately. They may nee to re-work that tagline to something like "inaccurate 85% of the time" or something like that. Anyway, you might go back and review this post when you have a moment: http://www.tfmetalsreport.com/blog/4836/another-monday
The reason I mention this is not to pat myself on the back, it's to control and manage your expectations and hopes. Yes, we're seeing some squeezing of the spec shorts...particularly at last night's Globex open. This is a very good sign as it displays intent. Why did gold open $15 higher? When was the last time that ever happened? The only time can recall is Sunday, 8/7/11, after the Friday 8/5 S&P downgrade of the U.S. The fact that gold opened 1% higher...on a Sunday...is a very encouraging sign. Perhaps The Cartel is beginning their long-awaited Spec short squeeze? We shall see.
Now, before you get too excited, again I ask you to go back and read last Monday's post. In it, I pointed out that gold could easily run toward 1320-1340 and silver toward $21 without disrupting the overall downtrend. And they have done just that. The key, obviously, is what happens next. They could just as easily roll over as The Large Specs double down and try to jam prices backward. IF, however, they extend here...and mover through and close above $1340 and $21.12....we might really be onto something. Therefore, watch the action over the next few days very closely and you may soon discover whether or not this brutal, nine-month beatdown scheme has come to an end.
And just a few words about GOFO again today as rates stayed deeply negative for an unprecedented and historic eleventh day in a row. First, Reuters of all people wrote up an excellent piece on the subject back on Friday. You should read it: http://www.reuters.com/article/2013/07/19/derivatives-gold-idUSL1N0FP1CB20130719 And our pal, Denver Dave, wrote up anpother excellent summation yesterday. You should read it, too: http://truthingold.blogspot.com/2013/07/the-negativity-of-gofo-rates-and.html & http://seekingalpha.com/article/1559542-update-on-gofo-factors-that-will-spark-a-big-move-in-gold
OK, that's all for now. As I close, gold is UP over 2% for the day...the rarity of rarities! Let's see if it can
extend hang onto these gains into tomorrow. Keep your fingers crossed!!