immediate target, page-5

Will have to wait until "Bernanke Speech" tonight to see where is QE heading.

But one would expect that QE could be indefinite but no one can predict this.


Market watch posted a very good article again about gold/gold prices.


Why heavy gold shorting could lead to a rally

Data last Friday from the U.S. Commodity Futures Trading Commission showed that large speculators, which include hedge funds, recently raised their short bets on gold to a record level, analysts said. That’s a bearish signal for prices, but may have also set the foundation for a rally.

When investors take a short position, they’re essentially betting that prices are going to go down. “This is quite clearly bearish,” said Fawad Razaqzada, technical analyst at GFT Markets, but “contrarians would argue that a small adverse move against the trend could see speculators rush for the exits and thus cause prices to rally sharply.”

The CFTC’s Commitments of Traders report, which offers data covering positions as of the close on Tuesday, showed that large speculators increased their gross shorts to show the highest number of short bets since the disaggregated COT dataset began in 2006, according to Gene Arensberg, editor of the Got Gold Report.

Managed money traders added 2,000 gross shorts to 80,147 short positions as of July 9, according to the disaggregated COT report on futures and options.

With so many shorts on gold GCQ3 to cover, “they better hope they are right,” said Arensberg. “Otherwise, if a short squeeze gets underway for whatever reason, the door to exit those shorts will seem awfully small.”

Futures prices on Tuesday climbed for a second straight day, adding $6.90, or 0.5%, to settle at $1,290.40 an ounce on the Comex division of the New York Mercantile Exchange.

http://blogs.marketwatch.com/thetell/2013/07/16/why-heavy-gold-shorting-could-lead-to-a-rally/?mod=MW_home_latest_news