Wednesday, June 24, 2009

Gold: Daily Bullish Reversal in the making. RMK.v, TNR.v,, SNU.v, SGC.v, ASM.v,, EPZ.v, BTT.v, GBN.v, FST.v, HUI, XAU, GDX, KTN.v, VTR.v

Fed is playing a very fine game: ultimate aim is to reinflate economy with orderly US Dollar debasement. Have you noticed that market came under pressure after all recent reports on green shoots to be too early and particularly after World Bank statement. As usual we have a coincidence of Treasury auctions this week to the magnitude of 140 billion dollars in one week. This game of green shots and cold water on them is very dangerous and Gold indicating its own battle around line in the sand of MA50 at 925.89. We have all in place for a rally in Gold: momentum indicators at previous buy levels, strong bullish white hammer yesterday. Who will win the battle this time? Maybe those banks and Hedge funds, who took huge positions in call options on Gold and was recently shaking the tree before major move in Gold. US Dollar will lead the way as usual.
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