What's Gold's Next Move: Correction or $1000?
Jason Hamlin
While the massive spec long position/commercial short position is worthy of concern, it is also worthwhile to point out that these exact conditions were the precursor to the last major upleg in the gold market. Commercial shorts have the deep pockets that typically allow them to get their way, but they were forced to cover back in September of 2005, and we expect they will need to start covering in this scenario as well. The weight of the sinking dollar and magnitude of investment dollars flowing into commodities may be too much for them to overcome. The covering of these short positions could very well be the fuel that helps propel gold to new highs in the coming months.
Well said Jason, well said.
I'll let my Silver chart above do the talking this morning. Please click on chart to enlarge.
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