A Gold Moment: October 20, 2014
Friday seemed that it was a day to confirm the validity of the recent upside move for spot gold. There were a few US economic measures that gave the stock market a rebound but hardly affected the gold price. The housing starts and building permits measures were firm but mixed.This gave a short lived test to downside support. Later in the day the Univ. of Michigan Consumer Sentiment Index showed the optimistic perspective in the US.
Stories have been building looking at the demand side. The Russians are said to be outpacing the Chinese for reserve holdings. This is always hard to measure in real time and an ear must be kept in the market to determine whether large amounts are moving. The Indian market is also expected to see a wave of retail buying as an expectation of pent up demand is apparent.
Technically, momentum is in the bull camp and continues to show upside potential for a test of the 1268-1275 level. 1249, 1253 and 1259 will be hurdles to jump before that happens.
ETF: GLD Deposits: 760.93 tonnes unch
Comex GC O.I.: 402,509 -362
ETF: SLV Deposits: 10,681.42 tonnes -35.78
Comex SI O.I.: 168,963 -318