RE: RE: AUG Gold 940They are trying to take Aug Gold down below 950 as I am writing this but I expect as usual 940 will hold...we have G8 meeting this weekend over in Italy, don't expect much from them except the usual stuff. Nonetheless traders don't take chances so porfit taking and book closing should be the theme of the day, especally for FX traders as they want to know G8's intention for Dollar's direction.
Gold stocks will still be weak as risk appetite is drawing money away from this sector to other commodities, most noticeable to copper. The media is selling the idea that China will lead the recovery, I have no idea if this is the case as I have to pay China a visit in order to know but as long as the market buy this idea, play along with it.
The chances for my friend Richard's call for a drop of $120 in gold this week is now very remote that he'll be right...next is Mr. Sincliar's call ie Gold will start to rise to 1650 beginning next week, note that his last call for such a move, Gold ends up in the 7xx area so you'll be the judge. Mr Sinclair is a well known die hard made in the 70's or even 60's pure gold bug (worse than you SG....hehe just joking) Nonetheless, if Gold is going to 1650 or higher, I have only one thing to say and that is "the time is right and the only thing that is stopping it will be if there are anymore rabbits from FED's hat"
Finally, for Gold stocks or ETF, wait for the sellers to come to your bids, don't rush it. Gold indexes indicate consolidation soon and next uptrend/downtrend after this phase. One last comment on exhange rates, I know it affect this ETF but I think it is actually benefitting HGU instead of HGD if our Dollar is strong.
So SG, yes I think you have another chance on 11.20 or even 10.80 (extreme case) but that'll be about it unless AUG gold close below 940 by end of month.