Even as the US Equity markets rallied late on Friday, the Gold rally seems to have gone unnoticed on CNBC (big surprise!!!).
Short covering by Hedge Funds, Bullion Banks or naked short sellers...........who knows!!
The US Stock markets have been all over the place and are impossible to trade. They can be up or down 2-4% a day without any major newsflow.
Equity markets everywhere appear extremely oversold, something that becomes especially evident on long term charts. Maybe another market bounce, post a CITIGROUP or GM bailout/rescue package.
Over the past few weeks there have been rumours of Saudi Arabia and then Iran purchasing GOLD.
Rumours that the COMEX might default on deliveries of its DEC2008 gold contracts.
Rumours that CITIGROUP could collapse!
Whether panic buying or short covering, the move after stabilizing in the $ 700- $ 750 range is encouraging.
Here is Mish's take on it.
I hope people are finally beginning to realise, that the guys running things are no longer in control, but are just confused bystanders, whose opaque policies and inconsistent decisions are doing more harm than good.