Gold Price Bullish Tendency Over Thanksgiving Holiday

By: Tim_Iacono

For years now, the Thanksgiving holiday in the U.S. has been a very favorable two-day period for the gold price as shown below - this year is not likely to be an exception.

While anything could happen later this week, a number of conditions have developed that would favor a higher gold price by the weekend, perhaps much higher.

First, due to the closure of the Comex in New York on Thursday and light trading on both Wednesday and Friday, there will be less selling than usual coming from New York bullion banks - this has probably played a big role in the steady gains over this two-day period in recent years as shown above.

Second, the gold price has surged recently, up almost a hundred dollars an ounce in just the last week, and this has undoubtedly caught the fancy of "momentum traders" around the world who may now set out to push the price higher.

[Note: If you go back to the day or two before Thanksgiving last year, you'll see that the price of gold has actually risen since then - from about $795 last year to about $815 as this is written for a modest 3 percent gain. Are there any other assets (aside from the U.S. dollar) that sport a year-over-year gain today?]

Lastly, there are those shrinking short positions for both gold and silver and the unknown number of holders of December futures contracts who, on Friday, will announce their desire to take delivery of the metal next month rather than having the contracts settled in cash.

Over the last eight years, the biggest moves have come on Friday, so try not to go into the day with too big of a Turkey-hangover.

By Tim Iacono
Email : mailto:tim@iaconoresearch.com
http://www.iaconoresearch.com
http://themessthatgreenspanmade.blogspot.com/

Tim Iacano is an engineer by profession, with a keen understanding of human nature, his study of economics and financial markets began in earnest in the late 1990s - this is where it has led. he is self taught and self sufficient - analyst, writer, webmaster, marketer, bill-collector, and bill-payer. This is intended to be a long-term operation where the only items that will ever be offered for sale to the public are subscriptions to his service and books that he plans to write in the years ahead.

Copyright © 2008 Iacono Research, LLC - All Rights Reserved

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.