The demand for gold ( physical ) is down- Gold for jewelry is about 70% of the total demand - in the third quarter of 2006 were down 4%, following a 24% drop in the 2nd quarter and a 22% drop in the first quarter. Demand for investment, industrial and other uses were little changed. Short term investors are up- but we trade on the movements created by the above parties. The lower demand is most likely due to the big increase in price, suggesting that higher gold prices will decrease the demand for physical gold = lower prices in the future....maybe.
Long speculators outnumber the shorts by 3 to one, 50% to 17% (as of November 28). Gold support is now at 625, then 614.60, and then 610 . . . and resistance at $648, $683, and then $733.
This is what I think...but I trade what I see not what I think!
