After last Thursday’s key reversal in gold and actual once in a million follow through on Friday, I actually had the nerve to think this time it could be different. Did I suddenly think the foot that has been held against gold’s neck on the Crimex (Comex) would actually be let go and gold could continue to rally into of all weeks, the monthly jobs report?
Sorry for such an impossible dream and let this be my punishment. But despite the usual effort to depress the gold price, the bears are losing the ability to keep gold down. This shall eventually lead to a strong rally to the upside after a period of back and forth (which I believe we're now in).
Despite an ever-increasing number of bearish fundamentals, the "Don't Worry, Be Happy" crowd says so long as the FED is your friend, all is well. Don't believe me? Just watch TOUT-TV (CNBC) and see for yourself. You will be required to sing this song to become a member of their club.
Sing all you want through Friday's jobs report but 30 years of experience tells me this is what takes place before the bottom falls out.