Monday, November 22, 2010
Gold This Morning: Nothing Has Changed --Jon
Well I am back after 15 days moving around Africa (7 different markets) observing again first-hand that the great levelling of the global economic and social playing fields remain intact. I also find gold this morning sort of exactly where I left it...decent turnover, GSR slightly firmer at ~49.40 but well within the range, and open interest ~630,000. The more pertinent changes are option vols are ~23 up from the high teens and a leading indicator of future eruptive activity and RSI is back under 50, a level that served well as a launch pad earlier this year. This morning: December options expire tomorrow and clearly $1350 has become the line in the sand. $1350 options are running around 3 to 1 on the call side so expect possible pressure as the hairy-legged guys have a significant economic interest to mitigate exercise. Keep in mind that the last major options expiration which occured this past September was a rather robust springboard to higher prices.