Dan-
This is a direct quote from the WSJ on Thursday August 28, 2003, p. B9...
"...Trading got off to a brisk start as a number of bullion banks sought to bulldoze prices through the $368-$370 area...In recent days, speculative and bullion bank buying has persisted in keeping the metal within striking distance of that region--despite a bullish performance of late by the US dollar...The early bullion bank buying was designed to poke prices through the nearby resistance and activate preplaced buy orders lurking just beyond that would spark a flurry of automatic buying.The ploy worked within the first 15 minutes of trading, with December futures bursting from the $368.50 level to $373 within 2 minutes just after 8:30 a.m. Eastern time on a frenzy of fresh buying and short-covering--the buying of positions previously sold..."
Dan, I do not pretend to be an expert in who's buying and who's selling and why, but I would think if the WSJ is going to print such a story, they would have to be 95% sure that the information was true. Personally, I have never understood why any bank would want to be continuously short gold. Surely they have technical analysts who can sense that a bull market in the metal is materializing and covering any shorts would be a logical step toward that state of grace we call "solvency."
But then again, WTFDIK.
schloss
AI
