short covering happening today, page-6

GM

I tend to agree in that I expect further near term downside to commodities, however I view gold as money and perhaps near term we get a situation of rising usd / rising gold price.

One thing I am 100% sure of is that by August this year Mr Bernanke will announce another version of QE - I believe that the take down in commodities in particularly Mondays stunning collapse of silver was orchestrated by the powers that be ( the 5 margin increases to silver in a little over a week says it all ) - bottom line is fresh batch of QE CAN'T/WONT be announced with gold / silver at $1600/$50 - certainly much easier for the powers that be to bring to market next round of QE with gold/silver at $1450/$30

Over the next few weeks NEM probably trades within $38 - $41 - longer term I have no problems with gold/ncm and would recommend that any weakness over the next few weeks be bought/accumulated.