Posted by rahrens_1 on August 10th 2011 at 08:33 am
Kingworldnews London Trader contact comments that he see’s gold showing $50/oz swings in a day going forward and $2/day moves in silver. Hummm, this sounds like deja vu, ah yes John Embry made comments to this effect several months back. Embry has commented that he expected at some point we’d start to see significant daily swings in gold prices, he indicated $50-100/day shouldn’t be unexpected. Hats of to Embry on this call. I wonder how long it will take for the novelty of $50-100/oz gold moves to wear off?
Jim Sinclair and James Turk have also noted several times that with the number of “events” taking place over the summer the odds of the ball being dropped and a loss of control event taking place were very high. This also certainly seems to have come true. It would also seem to watch “Santa’s” $1764 number closely. (Turd Ferguson’s name for Sinclair which I think is a fitting one)
Kingworld’s London trader source also notes that shorts gold seriously burned on Monday, including some very large traders. He also notes we’re moving into the active season for gold and thinks we could fairly easily run over $1800/oz.
So if this is traditionally the quiet season for gold one has to wonder what the active fall season will bring. But of course we no longer seem to live in traditional time, nor do most hold gold for “traditional” reasons like Bernanke does.
See full article here.