More bullish signs for gold:
-For a change, Au responded the way you would have expected with Bernanke making clear that money-printing ad infinitum is the once and future strategy
-The GOFO has been negative for several days in a row now. The short explanation is that the Gold Forward rate (GOFO) is used in gold-dollar swaps, where people who need dollars can put up gold as collateral and pay a low interest rate to borrow. A negative rate implies that the demand is now in the opposite direction – people are prepared to put up dollars as collateral and pay interest to get their hands on the physical stuff. It would appear that all the stories of surging physical demand in the East and dealers/exchanges running out of supply are in fact true.
-As discussed yesterday, and although only for a short-term projection, the chart is becoming a bit more constructive. And you can see it across the mining shares as well.
Don’t get me wrong, I am still cautious about the near-term and tend to think that down is still the path of least resistance. But changes like those listed above are all part of a bottoming process.
