"With gold now up an impressive 13.1% from its post-Bernanke lows 3 weeks
ago (notably more than the +8.8% in US equities), it appears the
physical demand is quietly catching up to the paper supply. As we
noted here, shorts covered around 11% of their positions in the last week
and we suspect today's surge is yet more covering as the massively over-crowded
paper-short gold position starts to unwind. Of course, this surge is
disappointing to many (including China we suspect) as the 'transitory' end of
the price beatdown means we can buy less physical (and take immediate
possession) now than at the June lows of $1180. With gold testing its
50DMA for the first time since February, we suspect the momo crowd will
be quick to jump ship should we push on through..."
at http://www.zerohedge.com/news/2013-07-22/gold-surges-its-best-day-13-months
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