Gold This Morning: Buyers --J

For the first time in several weeks overnight volume is meaningful and we already have turnover of 25,000+. Friday's open interest was down ~2500. Option volatilities remain rock-bottom cheap (if you think there's a big move out there in the wild blue yonder); yesterday morning boyz in the ring were buying OCT 1300 (13 days to expiration) for a buck and on this morning's move they printed OTC at $1.40. What's meaningful here is that the GSR has eased this morning to ~61.80. I am sure this number will be endlessly analyzed by the many out there more compulsive than I, but you are just going to have to deal with it...liquidity chasing assets. Yesterday's UST (ok, admittedly oversold just a tad) and S&P lovefest is looking more than a one-night stand. While the object of this daily paragraph is a golden snapshot at sunrise we have to be aware of the weather around us. Today: If indeed we muscle our way into the upper $1260s there shouldn't be a lot of resistance to a move toward the next big number, $1300.