Chuckey you could add to this that virtually every day since the beginning of July the high is made before 11am then sell off throughout the day , with particularly aggresive shorting tactics throughout the lunch time period.
However the risk now clearly favours the long side - as I mentioned earlier 28/9 a comex futures expirey , so gold was always going to be under pressure this week.
Benny B yesterday suggested the Fed is on the lookout for deflation and inflation and inflationary expectations will be closely monitered - I read this to mean we will have a new round of QE to ward of deflation , however not a snowballs chance in hell it will be launched with the biggest inflationary barometer ( gold ) sitting at $1900.
The market is being slowly "conditioned" to $2k gold - therefore a slow and steady run up in gold from current levels to $2k by the end of the year would not be considered un orderley.
Next year we need to be doing our NCM earnings assumptions on an average price of $2k - NCM currently trading to a gold price somewhere between $1000 - $1100.
NCM Price at posting:
$34.32 Sentiment: LT Buy Disclosure: Held
