In the last 2 days SPDR Gold Trust investors have increased their inventory by 12.5 tonnes. Inventory growth had been stagnant since Feb. 19th (14 trading days) I feel that this renewed investor interest is highly important because it has occurred while the general stock market was rising sharply and while spot bullion was falling in price. Also today, the spot bullion trading volume returned to levels not seen for 8 trading sessions.
I know that I shouldn't put too much importance on this one set of indicators but I believe this signals that the recent spot gold downturn (and related gold stock sell off) are over.
I know that sell offs will reoccur but I think the gold complex will now move up and strike into a recent new high trading range based on bullion priced above $1,000/oz. I'm not willing to forecast that spot gold will move above $1,030 in this next leg up, but I wouldn't be surprised.
My portfolio is now down 5% from the Feb. 5th benchmark. My large position in Kinross has unfortunately lagged the general gold mining share recovery while Iamgold has been recovering unexpectedly well, along with Yamana. Remember that Iamgold must work thru its new share issue noted in an earlier blog.
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Spot gold prices seem to be unavailable from 4 pm US Central Time on Friday until 7 pm Sunday. This is according to the streaming price session on http://www.usagold.com/live/price-break.html.
ReplyDeleteThis means I can't get spot gold prices as I write this. Not a huge deal, since stocks of interest cannot be traded anyway.
But active traders face bigger risks from the discontinuity of pricing. Whether they have a position on Friday or don't have a position on Friday, they are locked into their current situation for 51 hours during which time events of all descriptions can and will occur.
I wonder what markets are being reported on by usagold.com. I suppose the Vancouver Bullion & Currency Exchange is the one that is open until 4 pm Central Time Friday--I wonder if there are other important bullion trading sites not included by this source.
Spot gold prices seem to be unavailable from 4 pm US Central Time on Friday until 7 pm Sunday. This is according to the streaming price session on http://www.usagold.com/live/price-break.html.
ReplyDeleteThis means I can't get spot gold prices as I write this. Not a huge deal, since stocks of interest cannot be traded anyway.
But active traders face bigger risks from the discontinuity of pricing. Whether they have a position on Friday or don't have a position on Friday, they are locked into their current situation for 51 hours during which time events of all descriptions can and will occur.
I suppose it is the Vancouver Bullion & Currency Exchange that is the bullion trading site open until 4 pm Central Time Friday--I wonder if there are important bullion trading sites not included in the usagold.com report.
Huron, check out the London Metals Exchange. A major gold exchange that is open when U.S. markets are closed, www.livecharts.co.uk/MarketCharts/gold.php
ReplyDeleteHuron, try the LME: http://www.livecharts.co.uk/MarketCharts/gold.php
ReplyDeleteBet your gold position has improved since the day before yesterday. I did fine on 3000 shares of AUY at three different exit points but I was away from the trading platform at the time of Bernanke's announcement the fed would buy US Government Bonds.
ReplyDelete