Tuesday 1st April 2008: April Fool! Or Fool's Gold?
Maybe the guy who wrote 'Gold in Free Fall' was correct? Gold took a right pounding today and is now at Bid/Ask $881.20 - $882.00 at Apr 01, 2008 16:26 NY Time, 46 minutes before the Spot Market closes tonight.
We are told that gold has tumbled more than 3% ($30 today) because the dollar has rallied! As I write now, spot gold is quoted at $881.30, -$34.40, -3.76% on Kitco. Yesterday's London gold fixes were $937.25 and $933.50; todays were $897.00 and $887.75. Really, that's more like a $40 drop or 4%. Meanwhile the US dollar index has rallied all the way to ... 72.55, up 0.70, up 1%. That's quite a lot, but enough to empty the tank on gold buyers? gold has a relatively small market compared to currency markets, so maybe. Big rally in stocks as well. The Dow Jones Industrial Average is at 12,654.36, up +391.47. I wonder why? Perhaps they were oversold. Perhaps everyone thinks the credit crisis is over. Poor delusional people!
Possibly, even the amazing Jim Sinclair was also a bit premature on his website, fading out his $887.50 'Angel', indicting his confidence that a previous test of $887.50 had held many weeks ago and it was now out of play. Well, it's still in play, Jim! Especially if we get a real break below that. See his post on his site "Posted On: Friday, March 28, 2008, 12:25:00 PM EST, Do Not Fear, Author: Jim Sinclair" at the bottom of his homepage right now. The picture is also here.