London Trader describes the competition to buy physical gold at these levels as 'fierce' and is seeing heavy buying stepping in as even central banks wish to convert dollars and euros to gold.

In a subsequent post London Trader says that there would have been at least a partial commercial capitulation if gold had broken through $1810 on its last move higher. Interestingly enough $1810 is where I would look for confirmation for a breakout from the cup and handle formation. Apparently quite a few of the shorts see this as well, and have set their stops there.

By Jesse

http://jessescrossroadscafe.blogspot.com

Welcome to Jesse's Café Américain - These are personal observations about the economy and the markets. In plewis

roviding information, we hope this allows you to make your own decisions in an informed manner, even if it is from learning by our mistakes, which are many.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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