It’s encouraging that DaBoyz exploited a news headline yesterday — in this case, the results of Switzerland’s negative vote on gold — to drive bullion down to bargain levels. We’d become so used to distributive rallies that when accumulation on weakness occurs, as it clearly did yesterday, it comes as a pleasant surprise. It’s true that the steepness of the rally was due in part to the running of stops beneath some key lows made in mid-November before the futures took off. But that would have accounted for perhaps only $20-$30 of a move that went $80 before showing signs of fatigue. The March contract has pulled back by about $18 so far Monday night, but we should look for a follow-through on Tuesday to carry above the 1236.00 ‘external’ peak shown if bulls are warming up for a sustained surge. Take a free trial subscription that will allow you to access not only the touts, bulletins, updates and impromptu trading webinars during market hours, but a 24/7 chat room that draws veteran traders from around the world.

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 -- Published: Tuesday, 2 December 2014 | E-Mail  | Print  | Source: GoldSeek.com

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