It was a good day for all financial assets including Stocks, Bonds and Commodities, Gold and Silver are up while the USD index is down. HUI the AMEX Gold Bug Index is up 7.79%. Investors and traders lost their fears and bought everything they could, cash piles are back at work as it seems.
I just noticed that the Bank of International settlements (BIS) have published a new paper on over the counter derivatives including gold and other commodities. I will study the report and publish my thoughts and conclusions. You can see my thoughts on the previous BIS OTC report here :
Here is a link for June 2006 BIS OTC report
In my opinion gold is headed higher to new highs but it will have to struggle with resistance and profit taking along the way. Traders should concentrate on carefully buying bottoms and taking partial profits along the way. Gold is again above the 76.4% Fibonacci line which should provide good support for any impending pullback.
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