Well the fall certainly has not been achieved on the back of a few speculators alone who decided to short the market - no doubt we have seen some robust central bank "involvement" in the gold market dating back to the announcement of the Swisse devaluation. Rising margin requirements( many argue the CME collude with the short of gold bullion banks ) and Comex futures expiration last night have added to the downside spiral.
Gold will continue to move higher in time - I think Monday's low will hold and given that physical offtake from India/Asia is strong I suspect by the end of next week the gold price will be again north of $1700
Obviously some hard core technical damage inflicted on the miners , a result of which will provide excellent opportunity to add to positions in your favourite goldies.
NCM Price at posting:
$34.50 Sentiment: LT Buy Disclosure: Held
