$1,400 is NOT an Important Number
by David Schectman, MilesFranklin.com:
Yesterday gold closed at exactly $1,400. A lot of people in our industry make a big deal over this number. Actually, it’s irrelevant. I’ve been writing about gold through every “even number” from $300 to $1,900. Believe me, $1,400 is no big deal, but the hedge funds have decided to put up a fight here, and their computer-generated sale of contracts (paper gold) is geared to stop gold from rising, right here, at $1,400. They will eventually retreat and the same thing will happen all over again at a higher number, certainly at $1,500, $1,600 and up. None of the numbers have any special meaning. A big deal will be made of the first penetration of $2,000. This is a BIG psychological number and it also represents a new all-time high. But in the big picture, it won’t be any more important than $3,000 or any other number, and trust me, the numbers will get bigger and bigger.
Around the time I went to bed, gold was rising and moving toward $1,410. But when I came down stairs to my office and checked the price on Kitco, gold was $1,397. The funds are playing their silly games….
