1. New York gold futures ended higher on Friday after data...

1. New York gold futures ended higher on Friday after data showed that U.S. core inflation rose more than expected in April, bolstering the status of gold as a hedge against inflation.

2. However, when food and energy are included, U.S. consumer prices were unchanged in April from March.

3. It would quite interest to think if energy and food price would increased with the economy back to the expansion track.

4. The market as whole seems expect the price of the energy would be increase sooner than later.

GOLD

1. Gold for June delivery GCM9 settled up $2.90 at $931.30 an ounce on the COMEX division of the New York Mercantile Exchange.

2. A narrow range from $924.10 to $934.80.

3. Gold futures largely ignored news that China should boost its gold holdings to 3 percent of its total foreign exchange reserves within five years, compared with 1.6 percent now, according to the China Gold Association.

3.1> It should be significant in long term

3.2> It should set the base for gold price and make the gold price shoots up with more probability if some unprecedented events happen.

4. Late April, China revealed that it had secretly raised its gold reserves by three-quarters since 2003, increasing its holdings to 1,054 tonnes and confirming years of speculation it had been buying.

4.1> logically China should diversify its assets widely enough to withstand the unprecedented risks.

4.2> A economy should not make money by speculating the future events but could not ignore the risk control

4.3> More diversification into gold seems unavoidable, which itself could trigger a gold shoots up.

4.4> Human naturally rushes to avoid the risks and chances since all of us hungry to the chances and hate the risks.

4.5> The accumulation would be slow and steady but should be decisive towards a threshold.

4.6> Once a market sentiment change threshold reached, gold could shoot up as unprecedented events but with all of causes and reasons to happen.

5. June futures strengthened after data showed that U.S. core prices, which exclude food and energy items, rose a faster-than-expected 0.3 percent in April, even though headline inflation figure was flat.

5.1> Huge paper money now stay in the drawers of the bankers since the balance sheet pressure and natural intention to be risk-hating in the bad time.

5.2> But the bankers have to lend the money out to make the money.

5.3> They would lend the money desperately once they believe they are safe.

5.4> Once this sentiment is formed, the momentum would be fantastic or drastic.

5.5> All of things take time to get the energy and once they burst into action no one could exactly predict how far the would go.

5.6> Regulators and government want to control the momentum but any commands need the time to be accepted, processed, implemented, acted, and show the consequences.

5.7> Definitely something would be wrong and could be seriously wrong in real time and make all of exit plans for the huge money to get out of the market, if not impossible, take too much delay

5.8> The longer the delay the higher the gold would be up

6. Buying in the gold market based on worries of higher inflation has been a steady factor in the last several months - analysts.

6.1> DP's posts about gold show the trick changes of the market sentiment. It could be the early sign for gold to move up.

6.2> We are all sort of market players. We may be wrong but usually we would sense the changes earlier than the market crowd, such as moms and dads.

6.3> Globalp is quick hand and usually don't care about the market trend in months and years but from his posts, we could feel he has got the senses gold is very promising.

6.3.1> He has to since in the currency market, you have to bet the dollars for pennies and must stop the loss and catch the sign to make quick enough response.

6.3.2> Dlen and bieces are cheering to play in the energy sector, which shows the support for gold price if not shooting up but steady.

7. Market sentiment improved after AngloGold Ashanti, the world's No. 3 producer, said it promised to cut its hedge book by up to an additional 150,000 ounces in this quarter.

7.1> it is another fantastic good news for gold.

7.2> the hedge book reduction seems become a must task for nearly all of the gold producer in the world.

7.3> IAU, my favor new gold producer, have finished the hedge book closing not long time ago.

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1. Seriously saying, all of positive forces are preparing for the gold booming time but the change pivot should not reach at too quick.

2. The market needs some great images for gold shooting up since anyway gold has been battered by the financial Engineers for decades.

3. It needs something more to convince the public crowd that the gold is the money and could be used at anytime. What would really happen would not be important.

4. I just to take what I have got and wait patiently.
Life is good if we could see the future a little bit better.

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All in all, I am quite happy I have IAU, the rare new producers with so big cash position, extendable gold mines, strategic and promising gold exploration mines, no hedge book at all, tight risk control, and extremely gold production price. I bet on it for the gold upleg.