As everyone I too am not happy with this weakness in the miners in-spite of gold holding above 1250.
This is the highest level since the day 2 of US election.
All goldies are at much lower level compared to that time.
Anyway my theory is tonight is options expiry at the Comex.
There are north of 10000 call options contracts above 1250. At this price they all on the money.
So the bullion banks stand to lose money which cannot happen.
People would notice that since last week every time gold tried to creep above 1250 was quickly smashed back down. The dismal failure of Trumps Obamacare came as little bit unexpected by the bullion banks, which led to buying of gold. Even last night gold touched 1260 and then bam.......1253 in a few minutes.
So my expectation is they will take down gold below 1250 tonight.....perhaps around 1240....so all those options expire worthless. Smart money and institutional money know this.....therefore they are holding back from the buy side.
This game will go on for the foreseeable future. There are powers who control the price of everything.
I can't think of how that will ever change. We are just little pawns who try to be on the right side, whatever we think and expect, the opposite happens.
The only way we can win is to be in for the long haul....and even that is hard to do.....when you see the price gyrations....one is bound to make a move which will be proven to be wrong what ever it may be...either buy or sell.
In short to sum it all up.....it is very very very hard to make money from the market.
All the best.
BDR Price at posting:
29.8¢ Sentiment: Buy Disclosure: Held
