It's the end-of-the-year foolishness time, where you can run it up and run it down $10 on no news. I think it's a sell. But the downside in gold is limited.
People are buying gold because it is now apparent that we are going to see massive inflation. Gold is the best hedge for inflation.
It would appear that we are at the top of the trading range.
Seventeen-year highs are impressive, with the bond market showing us that inflation will be returning with a vengeance.
It's a huge technical negative to make new highs and fail. It's the funds. All of a sudden they all turn sellers.
It's a good sell right now. Could it go higher? Yes. But I would I be happy long-term selling at these prices? Oh Yes.
My brokers on the floor work every order I give them. You pick up an extra dime here and there, and it makes a big difference at the end of the year.
The funds came right back in, certainly, and today, I think, the correlation with the oil price was very evident. Oil went up to $75 and the metals went along with it.
The fund buying has gotten crazy again; they are taking prices to new highs.
It was COMEX options expiration today, so they got gold down near the big strike price at $550.
