Gold and Dollar Market SummaryPosted On: Wednesday, January 31, 2007, 5:24:00 PM EST
Gold and Dollar Market Summary
Author: Jim Sinclair
The importance of today was early in morning when it was clear once again that the cash market for gold was leading the paper market. This is relevant because the paper market is a market of flippers. The cash market for gold is a market of major - major long term investors.
All the drama that followed with rates staying unchanged by the FOMC and a higher GDP number amongst other not as positive economic reports are irrelevant. When cash leads paper and a break out occurs a major move upwards is at hand.
Gold as I see it is going to take out the platform which has been published yesterday and today. Assuming that is a correct call, we are off on a six to eight week period of serious appreciation. That can easily mean big numbers.