Tuesday, March 29, 2011
Gold This Morning from Jonathan
Straightforward overnight trade reflecting the continuing APRIL-JUNE roll pushed prices heedlessly within ~$12 buck range with sellers having the upper hand for most of the evening. The facts: GSR slightly easier at 38.50 continuing, we hope, our steady stream of non-toxic liquidity...RSI is ~51, hardly a pogo stick level, but leaving plenty of headroom for a retest of our recent nuzzle with overbought levels...gold open interest to my dubious mind is shockingly under 500,000 contracts again (basis last Friday); did those bailing get an early glimpse of Barron's front page gold abuse over the weekend or perhaps selling is again coincident with large UST auctions today and tomorrow? 'Whatever' as my sons are fond of saying when they remain honestly sceptical of anyone's party line. Today: Given the above mentioned media disrespect and the technical position be alert to frisky sellers assuming they can bully gold lower and remember our mantra...You can only manipulate a market in the direction it wants to go.