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Gold This Morning - Back From Central Asia --J

|Includes: SPDR Gold Trust ETF (GLD)
Overnight volume is the lowest I have seen in several months and we have traded in ~$5 range. Open interest as of Thursday was marginally higher at ~565,000 contracts but hardly representative of any trend or new buying. COT (Commitment of Traders) had no surprises and while commercials increased shorts by 15,000 contracts, the large specs offset that by a similar increase in their long positions. So, let's go to the GSR currently at ~64.60 and easier by 2 points since a week ago. This number is still 'in the range', but the relative silver strength in the face of hysterical bond buying and Japanese attempts to jawbone their currency lower without success should be noted carefully. We must keep in mind that September is seasonally the beginning of Gold's most robust trading period as the dogmatic pundits will remind you of upcoming holidays, Indian buying, and Chinese hoarding. Nevertheless relative strength is presently close to being as elevated as it was at our all-time highs in June and it is also clear over the past week that ~$1145 has been a resistant level with either sellers or manipulators at that barricade. So, let's see if we can muscle through that area, but if not we suspect the downside should be muted in a pre holiday week.

Disclosure: No positions mentioned