Based on the time of year when hedge funds look to unwind starting in November and what that implies before then (that no new money is being put to use), and then the December closures of portfolios right after that one would think that enough for Gold to bear.
Now we see yet another volatility alert on the radar which has served us well in these last 30 days of trading. It looks like below $1279 or above $1286 spot will start an acceleration.
But wait! There's more. China Golden week is upon us, and that essentially means theyear is over. Their "elections" also come in November as well. That makes it basically a wrap for all but the most independent money to enter the market on the buy side.
One glance at the last few years gold price action suggests he may well be correct...
After this Friday's close, China will be on vacation for its Golden Week National Holiday and this weakness appears to be traders front-running the traditional chaos that the rest of the world plays when China leaves the playing field.
H/t zerohedge
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