London Gold Market Report
SPOT GOLD PRICES held steady again early Friday, recording an AM Gold Fix in London of $745 an ounce and standing 1.5%, 3.6% and 0.7% higher from the end of last week against the Dollar, Sterling and Euros respectively.
"We are now at a lower range," said William Kwan, head of bullion trading at Gold Capital Management in Singapore, to Reuters earlier.
"I believe there's a lot of demand from short-term speculators around the $700 to $720 level. They might be accumulating gold slowly,"
"A lot of people are still buying Gold Coins. Retail investors are very happy to buy at these levels.
"New analysis from Standard Bank in Johannesburg today showed that the net long of speculative players in the US Gold Futures market reached a six-year low at the end of Oct.
The outright number of speculative short positions – betting that the Gold Price will fall – reached a nine-year high.
"This suggests that, if a short-covering rally is triggered [by rising prices] in the near future, it could well be a sharp one," says Standard Bank's Precious Metals Monthly.
Michael sez: What all this means is that Gold is being sold short like crazy. Huge amounts of money are being wagered on it falling in price. But if it rises there will be a sell off of other things, like stocks and bonds, to cover the asses of those who have bet on the drop in price. This will lead to more idiocy in the banking area. Central Banks do not like gold and silver. They want people to keep their wealth in fiat money. They want people to invest in stocks and bonds, the traditional paths of investment. They do not want people cashing out on their bonds and stocks and going somewhere and buying precious metals. They want SSDD, which stands for Same Shit, Different Day. Just more of the same. DO NOT BE FOOLED.