Today's drop in gold is a gift in my opinion. My energy
indicator was still negative this morning, so I did not buy
yesterday's pullback. I am watching whether energy flows turn
positive before buying.
With June contract's first notice date on 31st, I do not expect
this dip to last long. I see this as an attempt to rinse weak
long hands without closing the contract at attractive prices to
initiate delivery. The rumor has it that The Fed is stuck short and
is unable to exit its short position. Today's rinse of longs serves
that purpose for them to reduce their short exposure as much as
others are willing to give.
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Today's drop in gold is
USA GDP (QoQ) For Q1 1.3% Vs 1.1% Est.; 2.6% ...
Posted by junkie on 25th of May 2023 at 09:09 am
Today's drop in gold is a gift in my opinion. My energy indicator was still negative this morning, so I did not buy yesterday's pullback. I am watching whether energy flows turn positive before buying.
With June contract's first notice date on 31st, I do not expect this dip to last long. I see this as an attempt to rinse weak long hands without closing the contract at attractive prices to initiate delivery. The rumor has it that The Fed is stuck short and is unable to exit its short position. Today's rinse of longs serves that purpose for them to reduce their short exposure as much as others are willing to give.