Correction to previous post.

The previous post refers to a "head and shoulder" formation. The text should read "reverse head and shoulder formation." The blog refuses to accept commands to correct the mistake.

Edelson has reiterated his forecast of gold dropping to 1250 or below. The market shows no sign of moving much lower. What we see is massive volume. What we see is a massive volume in gold transactions. It it is buying, how come the price stays put? And if it is selling, why don't we see a drop?

The obvious explanation is that very large quantities of gold are being transferred (most likely to China) and the gold price reflects the agreed upon transfer price. This is very similar to what happened in December.