Is gold heading to $4,500?

Thursday, August 23, 2012
By Paul Martin

Commentary: Are gold fundamentals, technicals most bullish ever?

Aug. 23, 2012

The yellow metal made life very difficult for commentators trying to keep a regular schedule on Wednesday.

MarketWatch’s Claudia Assis can hardly have hit the send button on her story headed “Gold ends lower as other metals gain” , which dealt with the close of floor trading — the December gold contract was down $2.40 — when the Fed minutes set the market roaring.

By the stock market close, gold had risen over $17 to stand 1% above Tuesday’s stock market closing level and at the highest since early May.

Gold shares, too, came surging out of negative territory to finish with strong gains. The NYSE Arca Gold Bigs Index XX:HUI +1.01% closed up 2.21%, the highest since June 19 and up 17.2% since the recent low on July 24.

This late development followed a strong day on Tuesday, which saw a floor close in the CME December contract of up $19.90 (1.23%) and a 1.69% gain in the HUI.

This was enough to stimulate exuberant commentary by the Aden Forecast’s GCRU service, published early Wednesday morning: “AND….. THEY’RE OFF! The markets have taken off. The train has left the station, and another leg up in the bull market is getting started.”

The Rest…HERE

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