From Gold Market Summary:
Gold Market Summary
Author: Jim Sinclair
This past week is simply an interlude in gold's well-established uptrend. As I see it, the potential for this reaction is only a few dollars off the top and five days in duration.
Well, we are this evening about there. The gold price cup-shaped formation should give us a shot early next week at the $430.30 level.
My greatest concern is the technical position of the U.S. dollar. Look, we all know that the problems of the dollar are severe but we are a minority. The majority kid themselves because it is self-serving. To cut to the chase, I am concerned that the dollar may be predicting some type of terrorist event on U.S. soil that has yet to appear but nonetheless is close in time.
Last evening's dollar-positive intervention should not have been a total flop. We know there was a major interest that was active right before the 9/11 event in the option market on the short side of just those airlines used in the incident. That was money in the know so to speak.
The statements from Europe that the level of the Euro is no problem at all is likely motivated by an inability to change what is occurring - so why not make it appear that it's government-approved. The rule of thumb in government is never saying anything that might even suggest that markets are bigger than government. Well, the government intervention last night ran into something very big out there as a dollar seller.
I want all of you to be very careful as this month comes to an end. Home is a nice place and a home in the country and away from major population centers might be a great use for your profits.
blundered the link to Gold Market Summary
True in a terror-free world as well.