Gold This Morning -- From Jonathan

Mike Churchill prepared this thoughtful piece [will include if I receive permission] over the weekend. My basic trading metrics are all positive. COT numbers released on Friday continue to reveal a stunning reversal for the second week in a row where large specs have been heavy sellers while commercials are significant buyers and covering shorts. RSI(14) is ~35, firmly in oversold territory.Gold open interest which includes the always actively traded year-end DEC contract is below 450,000 from over 600,000 exactly one year ago; not exactly a speculative surge. On the other hand option vols have blown out, currently ~32 double the levels we traded at early this year. A completely anecdotal measure of professional trading interest is that COMEX seats (gold, silver, and copper) are trading at $120,000 up from $55,000 last January.

Edit (8:37) Mr. Churchill's report is available here http://www.biiwii.com/analysis.htm for download in PDF format.


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