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BIG BUYERS VISIBLE IN GOLD

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Big Buyers Visible in Gold Two weeks ago we saw the $XAU and gold stocks break out of a 3 month bottoming base on high volume. Gold subsequently broke 400 and shot up to 412, pulling back last week while the stocks began to form a new short-term consolidation pennant. They appear ready to break out again this week! In a previous newsletter I called this rally a "triumph" for the gold bulls and indeed it is. It confirms the bottoming formation that the stocks and metal have been putting in place since May. I expect the rally to continue in September. We should see a minor pullback and consolidation and a monster breakout later this year or early in the first quarter of 2005 to mark the launch of the next giant bull run in gold. The fundamentals of an exploding budget deficit and weakening economy are in place to support this bullish view . And so is the recent action in the gold market itself. There was massive volume in the gold futures market when gold broke 400. When it pulled off of 412 and bounced up off of 400 again there was again big volume on the bounce. As John Brimelow reported today on CBSMarketwatch: "Below the surface, the past two weeks have seen extraordinary increases in Comex (New York Commodities Exchange) open interest, which have accompanied gold price recent moves. " "Open Interest," is the total of futures contracts outstanding. An increase occurs when a buyer bids to acquire a contract -- a promise to deliver -- and is accommodated by a new seller. Or, when a short seller is accommodated by a new buyer." "Since Aug. 12, open interest has gone up 24.6 percent, 54,749 contracts, equivalent to 170 tonnes of net gold buying. This includes one day, Aug. 19, where the rise was apparently the second highest on record. " In other words, gold volume has been huge. It's just the price that has been boring." I think we'll see gold break 431, it's 52-week high, within the next 6 months. I'm expecting a rise here and a pullback in the Fall - that's a pullback I'm going to use to accumulate a large gold position. When I do that I'm going to recommend to WSW subscribers a basket of gold stocks to hold. They are stocks that I expect to make a fortune with. Everyone is talking about the election now and all you hear about on CNBC is how the market is going to go up when someone wins the election. Well maybe it will and maybe it won't. But gold is what I'm focusing on - because it is where the real opportunity to make big money is. And this recent gold action screams that that's where all the money is flowing. Here is a must hear interview by Frank Barbera, one of the best gold stock analysts out there who happened to be a member of the team that designed the $XAU. It covers a variety of topics - including the ultimate fate of the dollar and the Nadsaq - You've got to hear this: https://marketviews.tv/freeservices/archives1/Guests/Barbera/pg1.htm Keep track of changing trends in the gold and stock market with our free weekly newsletter available at https://wallstreetwindow.com Disclaimer