Monday, July 8, 2013

Lot of speculators in the Gold market

You have a lot of speculators driving the market. You have speculative longs that are getting out and you have speculative shorts getting in and in some cases they're the same people that are flipping their position, they were long and now they're short...

I think the idea came that the stock market is doing well. It has been outperforming gold. People were looking at what they perceived to be better opportunities elsewhere. There was the perception that as far as the global financial crisis the worst was behind us, and then you got Ben Bernanke basically claiming victory saying his policies have worked and we finally have the recovery we have been waiting for, and that he's on the verge of removing quantitative easing. ...

The Fed taking this away is giving people more reason to sell gold.

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