Gold This Morning: Stay Away From Crowds --Jon

More robust overnight turnover provoked some steady selling around the time that European traders arrive at their financial institutions and receive their breakfast menu; perhaps we should investigate who has the catering contract. Given yesterday, our second trip to the wood shed within 3 days one would expect us to be more chastened, but frankly I am feeling feisty. Overnight I read the mob consensus that we shall again have to test $1300 on the downside, and believe me if we do the nasty hairy-legged buggers on the COMEX floor will make sure all the stops crowding that round number will be spanked...so look out below on that eventuality. This morning we have GSR slightly higher ~57.20; open interest came in by 7,000 contracts and while the absolute number is elevated, it's encouraging to see some net selling; and RSI is now under 50, a location we haven't basked in since late July when DEC was trading ~$1200. Today: It's Friday of a wretched week so a positive day we shall take as a gift for the weekend and if we work our way back to the low $1330s we might just start to unnerve the sellers...again. By the way the Sprott Physical Silver Trust will be publically offered next Wednesday (maybe earlier). They have modestly filed 40 million units. If you hear a much larger number it could goose silver.

Update (8:26) Adding updated GLD chart for a proxy look at gold.  Looks like overnight activity took care of the gap.  I would not be bearish on gold right now... but that's just me, an id Boy.  --Gary