A strong NFP data should have caused a steep decline in gold but I think nobody was prepeared for that at Smartmoney.
So what can the banks do in this case? Bullion banks are starting to pull up gold price in the low Friday afternoon session. In the gold market - and miners market - traders get used to buy the dip so they think the rally will last forever. But not this late in the daily cycle and so much stressed above the 200 on the . Miners are due for a correction and I think we have seen the top in GDXJ and GDX yesterday.
The artificial gold rally on Friday gave the chance to miners to rally higher and banks could sell into this breakout.
I'M looking forward to see a GAP down open in the miners on Monday.
Gold is rallying with Blees 0 for the 6th week now.
The greenback cannot rally on a strong job data.
Oil rallied for 3 months despite the fundamentals
Fundamentals are not working anymore. Governments had printed too much money.
We are entering into a horrible inflation. Take my advise and hold your gold longs. If you short oil and S&P you will give back your
Gains you are making in the precious metals.
Why buy gold with expected deflation? Central bank credibility
People are buying gold that have never bought before. Things are different. I see how you try to trade the cyclicity of your DCL. Understand that charts don't predict the future. Important dates for gold... Fed rate and Deutsche Bank earnings (July 27th) I see large short term put options being purchased :) Hard to trade random information but the trend is clear. There is historical precedence for gold not printing a DCL. Do you want to be short when you really want to be long?
Tomorrow we will have 3 FOMC members speaking 9:15 Tarullo, 9:35 Bullard, 17:30 Kashkari. Let's see what they have to say. I think now conditions are OK for Fed to start talking - looks like we have officially recovered from Brexit :).