GOLD Back In Vogue

I must admit, even though Gold did manage to open up strong for the week and trade right up near $1340, I was not all that impressed. I would have loved to see it surge right through that level and it still just may do that. It is humorous to read everyone being cautious and looking for levels to re-enter on the short side. This market can get very interesting this week with this type of thinking. I would not be surprised one bit to see $1400 rather quickly. I have mentioned in the past that I can't wait to see the shorts have their faces ripped off with a massive short covering rally, maybe we are on the cusp of seeing this happen! We shall see in the coming days, either way it is fun to watch Gold and Silver finally showing some life.

What has the metals got going for them? Let's see, OIL appears to be comfortably over the $100 benchmark. I love all the stories today about a flash crash in OIL prices, my opinion- that is just wishful thinking. Oil should be alot higher than where it is today based on the rally we have been seeing in the global equity markets, these OIL prices are long overdue if you ask me!

And all that talk from the media of how bad the things are in Euroland and how the US dollar is the cleanest shirt in the laundry bag, as they say. Well take a look at the US dollar

Does that look like a KING? I think not and I believe things are going to start to heat up in the currency markets in the coming months. I really see brighter days ahead for the Euro, Aussie and Cad. Have a look at the charts especially the Aussie, I would say we have carved out a nice rounding bottom on the daily chart, I see a ton of upside here my friends!

We need to clear 9250 in the Aussie and things will really start to look better going forward!

Here is the Euro

13220 is the number I am watching, I believe we are going to make a bee line for 135 once we get above the 13220 level. Are you positioned properly?

Bottom Line- With the $ headed lower and OIL headed higher, Gold and Silver do have a couple of favorable factors working for them currently. Stay tuned, it has been a while since we have been able to have some fun with these markets. Word of advice from one with experience- DO NOT TRY TO BE THE SMARTEST GUY IN THE TRADING ROOM!

Thanks for reading, Good Night
Martin