Active overnight trade provoked several episodes of spirited and in one case fierce buying and selling initiatives taking gold prices down currently ~$12 bucks. Clearly confrontation at new all-time highs should not be unexpected; it's our commodity version of March Madness and a time when you must avoid the bookies and discreetly plan your own handicapping and deception. So let's deal with the facts...GSR unchanged ~41.40 maintains the nectar of liquidity. RSI at ~67.70 provides headroom for further anticipated strength. Gold open interest rose ~6,000 contracts to ~516,000 and it's important to gauge these new participants on an up day. Lastly option vols are beginning to crawl out of the dark grotto as traders grasp their gearing convenience and power. Today: If you have mastered the facts than you must seize the opportunity. Do not be ignorant and apropos of our title today (extra credit for knowing the author) keenly remember that in the land of the blind the one-eyed person is King or is Queen.
[Note: A little birdie tells me Dennis Gartman is going bearish gold again; funny, I did not know he was ever bullish of late. Chavez brokers Libya? Ha ha ha... bulls will find any reason to party. Gold is not about war, terror or revolution. As Jon writes, keep an eye on the 'facts'. Gold is about exposing systematic and ongoing inflation by policy. You don't think the mid East uprisings just spontaneously combusted, do you? --G]
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