Anyone else encouraged by strength of gold as of late? Some consolidation after nice run-up to $900+ was to be expected. IMO we may see that period end very soon. Today is kind of a 'lame-duck' day for gold trading. Yesterday was last trading day for January futures and tomorrow is first notice day for February futures... today is the day in between LOL. Therefore, volatility we are seeing is expected and expected to continue. But the trend will be up IMO. Could see some very volitile movement to the upside tomorrow and into next week given relatively large positions outstanding on February contracts. We'll see.
red911
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Re: can Gold breach 900 again?
posted on Jan 23, 09 02:06PM
Gold has touched and moved through $900 many times thus far today. Now trading nicely in $895-900 range. Expected resistance at $900 and that's what we are working our way through now. Like someone said I have not seen this much strength in gold in a few weeks. Some have speculated that the physical run on Comex that was said by some to happen in December 2008 may actually happen in February 2009 as there was same extreme disproportionally large buildup of call option (with strike greater than $900) contracts for February. FYI... some interesting dates coming up next week that may explain some upward pressure on gold...
Tuesday, January 27: FEB options expire
Wednesday, January 28: JAN futures last trading day
Friday, January 30: FEB gold futures first notice day
Just one perspective on this to consider.
red911
