Read the post by BUFFET last night on yesterdays day trader thread.. The gist of it is that the results of the stress tests on US banks were leaked, their release are being debated because the results are that the banks are insolvent and severely stressed.... if this report is confirmed, panic may set in and GOLD will go up imo- based on past experience.
Check out the bad news events and the GOLD price movement a day or two later for the past 24 months....
Going from memory (so don't quote me) July 2007- first inkling that there are problems with Sub Prime mortgages in the USA- estimated at $100 billion US at first..... but more dire predictions of up to $500 bil.....even as much as $1tril. having personally felt for years that we are due a major de leveraging event, moved all my holdings, yes 100%, into GOLD in August 2007.....cashed in profits in Feb/Mar 2008
Sept 2008....Lehmans allowed to fail....serious concerns about counter party risk in CDO's and Credit default swaps etc...CITIBANK and GS also in trouble- news of this hit the market on a Friday, the following Tuesday GOLD had gone up substantially..
And there were about two more serious bad news events which I traded successfully- also had no losses trading gold in more than 30 substantial trades to date...
