come friday, gold will only go one way, page-27

Interesting comments, Twinsen

at $1900 gold price, each contract represents $190,000 worth of gold... so controlling that with $7400 was too low. You only needed a $74 intra-day swing and all that margin is wiped out, and we have been seeing those types of moves.

I doubt very much that we'll see a fall back to $1500 with the CME doubling margins again... maybe this would happen if gold doubled and we started seeing $200 daily moves.

What I find interesting is that we haven't seen much speculation in the futures market... much less than at the end of 2010.... interested to see what the open interest positions will be in next weekend's report and how much short covering the bankers have done during this fall


Rowingboat