Have a feeling we might see some fireworks tonight - Monday is Dec Contract settlement date.
Back in March, when gold tanked, it was a Wednesday night our time that the tanking began, after gold had failed to post higher highs, and had posted lower lows. Now we seem to be in an inverse position, and the same timeframe out from the contract settlement date - will it be tonight.
This guy, www.fractalgoldreport.com - David Nichols thinks so - you can see a free report of his on Kitco.com at the moment.
I went back through his archives for the March period - and sure enough he was touting the major correction to come with a target area of $675 - $730. Now he's reading an almost immediate leg up that will take it to at least 875 - perhaps even 930. He also distributes a market update on the SPX - yesterday he said there would be a rally around the energy zone of 850 - while it pierced it last night (on its third attempt), it certainly bounced back strong to reclaim that level - and futures are still healthy now. Will it continue?
If it does, that's positive for gold - stocks rising, gold rising, carry trade re-commences thus hurtling the US dollar down - to what level I don't know - but I could be wrong on this, but it has unsuccessfully had 3 attempts at getting through 88 cents on the USDX - starting to look technically better for the longs to take their profits.
Just thinking out aloud as I'm exhausted from this gold correction - time we had some funamendally based price action.
