Saturday, 21 November 2009

Gold closes at weekly high for second week! 2009-11-21

Gold closes at weekly high for second week! 2009-11-21
Saturday 21 November 2009 at 10:51

Here are the closing prices from Kitco on Friday night:

Bid/Ask: 1150.90-1151.90
Low/High: 1150.90-1151.90

So it closes at the exact high at the end of the week. I have heardly ever seen this before in 8 years watching the gold market. Except for last week, when gold closed practically at the high on Friday's close.

Nov 13, 2009 17:15 NY Time
Bid/Ask 1118.50 - 1119.50
Low/High 1101.90 - 1120.40

Is that bearish action?

Maybe we do have a speculative fautures rally right now as John Nadler states in te LA Times.
Gold market disconnect: Record prices, but not demand
November 20, 2009 2:42 pm

The Commitment of Traders (COT) report shows an all-time record of short position of the major gold banks; this often happens before a big price tumble. However, on new gold price highs, these positions have tended to increase higher than at the previous peak. See this great essay on gold Commitment of Traders numbers by Adam Hamilton at Zeal Intelligence:
and it might be a good idea to take a look at its predecessors too.

Remember that this time last year, gold dipped to $680 from $1000 during the credit crunch and demand was up a lot at that $680 price. Premiums on coins were huge (I heard from a coin dealer this week that at a major coin show, premiums on US pre-1933 $20s are huge again).

Perhaps you can't expect demand at $1150 to be the same as demand was a year ago at $680!

Although it is Indian gold demand that is supposed to be down this year (apart from their central bank buying 200 tonnes at $1045 per ounce a couple of weeks ago, perhaps showing the lead to their people), Kitco linked to this article. Interesting.

In India, you're in gold's own country - Times of India, Nov 21 2009 2:03AM

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