Many would consider price action last night in Gold is a breakout to the up-side Technically its there but emotionally its hard to believe. We'll see if it is true or false in the next few days. If it is a false breakout - we should get a sharp drop back breaking support, if its true the gold price will seem to float up (usually called a 'melt up'). I moves 5% into cash expecting another leg down to 1200 or so - as I said before its hard to emotionally believe the breakout at this stage, need some followthrough.
Some guys here are looking at past price action and using it to judge current direction. Not a healthy outlook. You should however be looking at current conditions and expecting consolidation - the 'cure' for high prices is high prices, the cure for low prices is low prices. Ask yourself this question - would you drop 10% of your cash into gold right now? If you answer that question in the negative - assume 90% of people are doing exactly what you want to do. Something has to compel people to act, or they wont (at least not in numbers significant to move the market). The other side of that is Are you willing to drop your entire Gold stash for cash? No? well probably 90% agree with you. Its the 10% that move the market all of us (including leon) are just followers.
Possibly, but sustainable price direction is not determined by news but by physical supply. Nobody is going to sell you physical gold for 1000 bucks an ounce, but if you want to buy 10 tonnes for 2000 bucks an ounce, I bet you will have all you want. Supply is quite abundant at the 'right' price
