KING WORLD NEWS - BLOG
BROADCAST../../../../Broadcast/Broadcast.html../../../../Broadcast/Broadcast.htmlshapeimage_6_link_0
HOME../../../../King_World_News.html../../../../King_World_News.htmlshapeimage_13_link_0
BUSINESS../../../../Business.html../../../../Business.htmlshapeimage_14_link_0
GREEN../../../../Green.html../../../../Green.htmlshapeimage_15_link_0
HEALTH../../../../Health_1.html../../../../Health_1.htmlshapeimage_16_link_0
ENERGY../../../../Energy.html../../../../Energy.htmlshapeimage_17_link_0
SPORTS../../../../Sports.html../../../../Sports.htmlshapeimage_18_link_0
GOLD+../../../../Gold.html../../../../Gold.htmlshapeimage_21_link_0
 

Dan Norcini continues:


“Once you had the 50 day moving average in gold violated to the upside, then you had a much larger wave of short covering which began to occur.  You have to keep in mind that the hedge fund community has not only been liquidating longs, but they have also been adding fresh shorts.


The hedge funds had been anticipating gold would break lower, but they’ve been stymied by central bank buying coming out of the Far East.  The momentum crowd, that was waiting for $1,600 to be breached, then took over and the move has continued to feed on itself....


Continue reading the Dan Norcini interview below...  




Advertisement


To hear the man with over 40 years of experience in the resource

markets and how he is positioning his clients to weather

the current financial storm click on the logo:







“With all of that momentum in gold, and Draghi’s comments out of Europe, it was too much for the shorts to handle so we have seen additional short covering today.  I would note that bullion bank selling up at the $1,620 level slowed the advance today as they were capping it in that area.


Assuming gold is able to break through $1,620, the next important resistance level is at $1,640.  If gold can push through $1,640, then it’s on to the $1,675 to $1,680 area.  Through that level we really begin to trend higher.


We also had option sellers at the $1,600 level that were forced to buy today because of the option expiration.  In the past, when we have seen a situation like this, gold would have been pushed below $1,600 so the $1,600 calls would expire worthless, but they could not get that done today.”


Norcini also added:  “The gold market has been in this consolidation pattern, and building a base for a long time now.  The bigger the base, the larger the move out of that base.  If we get a breakout from this very large base that gold has been in, and gold is able to take out $1,700 on the upside, that is where you will really see the shorts panic. 


If gold breaks $1,700, it will be absolutely devastating to the gold shorts. With a break above $1,700, I would expect gold to move very quickly to the $1,800 level because of the amount of energy that’s going to be unleashed in that market.”


© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.


The interviews with legendary Art Cashin ($612 billion UBS), Gerald Celente, Don Coxe ($538 billion BMO) and

Eric Sprott are available now.  Also, be sure to listen to this week’s line-up of other KWN interviews which include MEP Nigel Farage, Peter Schiff, John Embry and Egon von Greyerz by CLICKING HERE.


Eric King

KingWorldNews.com

To return to BLOG click here.




 
 
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.html
KWN BLOGhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlshapeimage_24_link_0shapeimage_24_link_1

© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

Subscribe to RSS
CLICK HEREhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlshapeimage_27_link_0shapeimage_27_link_1
KWN Blog
Archiveshttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlshapeimage_28_link_0shapeimage_28_link_1
http://www.kingworldnews.com/kingworldnews/Broadcast/Broadcast.html