Posted On: Wednesday, May 17, 2006, 6:32:00 PM EST
Gold and Dollar Market Summary
Author: Jim Sinclair
What a magnificent operation in the gold price by the BOE! It was totally transparent to the trained eye however.
Inflationary news comes out and the equity market regurgitated down $200. Gold hits $710 in the pre-COMEX market and the Bank of England rushed to the rescue.
If gold held the $710 level copper and zinc would head for new highs. The LME would have then been in deep trouble. The BOE lends gold to an intermediary that sells, not to sell volume, but in a manner to impact prices. That manner is to hit standing bids left and right like there is no tomorrow. The specs who are always predictable try to bail on each other. Gold then goes into the $685 cash level once again, challenging the magnet at $682.
With a little help from its Fed friends, the dollar stages a piddling rally once again, topping the last stand Fibonacci Retracement line.
This is an OPERATION depending on pure unadulterated "BLUFF" tactics. Like all operations in the 70s, this one will absolutely and completely NOT succeed.
Stand fast, get a grip and hold on!
The lesson here is that margin is a financial death wish in gold anything. If you use it you lose $$$. If you abstain from margin by simply saying NO, you will have all of your position totally intact at $1650, thereby outperforming all the hot shot, wannabe traders inhabiting the Internet.
mehr...
http://www.jsmineset.com/