Greetings!
With the holiday season just beginning, I expect thin trading to be the underlying factor driving the precious metals markets next week. It is widely believed that most money managers have squared their books in regards to gold and silver. This was probably done during this last deep correction. However, any fund managers that have lingered and not squared their books most likely will do so next week. That being said and because of the light volume we could see price spikes or increased volatility due to that.
In lackluster trading, gold was able to hold above $1600 per ounce, but just barely. Silver also traded in a very tight consolidating range and has held above $29 per ounce. An interesting side note: It was reported today that John Paulson did not fare very well in his gold fund. Although the precious metals markets showed a positive performance this year, his gold fund lost 10.5%. This is in the light of the fact that precious metals have shown annual gains for the last 11 years. Gold is still maintaining a double digit increase this year, currently up around 13%. This is despite the fact that gold has corrected from $1920 to its current price just above $1600 per ounce.
I want to personally wish all of my subscribers a great holiday season and my best wishes for next year. Wishing you is always good trading,
Executive Producer | 
