Reply #11: Rather strange movement, especially in light of the weaker euro. I

[54anickel]

did post something, yesterday or Friday about a lot of expirations coming into play for this week in gold. Certainly seems like someone's playing in the market. Had some big one time moves on INO again yesterday.

edit to add:

Gold under $385/oz on weaker euro

http://www.netassets.co.za/equities/nabrksreps/brokersDetail.asp?websitecontentitemID=31152

Gold was trading below US$385 a troy ounce on Monday afternoon due to the weaker euro and yen against the US dollar, with the metal continuing to find support above $380/oz ahead of the next New York Commodity Exchange or Comex option expiry later this week.

snip>

"Gold and the currency markets are both caught in a technical, sideways rut. There is very little direction to the market," a London analyst said.

Sounds like the result of nowhere to run to, nowhere to hide - once bitten twice shy to take the gold plunge

Longer term, the analyst is bullish on the US dollar gold price due to a bearish view on the US dollar. By year-end, he sees a gold price of $415/oz and a euro of $1.28 to the US dollar.

Going into 2005, the analyst sees gold remaining bullish.

Investment bank UBS is also calling for a firmer gold price and has a one-month target of $390/oz and a three-month target of $415/oz.

snip>

However, both metals remain vulnerable to fresh worries about higher US interest rates or a sharp slow-down in Chinese gross domestic production growth.