Wednesday, February 25, 2009

Excerpt from the Canaccord Capital Feb. 25, 2009 "Moning Coffee"

Gold Futures April ‘09 (GOLDC : NYMEX : US$969.50), Net Change: -25.50, % Change: -2.56%

Tarnishing. Gold has pulling back from its +US$1,000/oz highs. Arguably, gold has been overbought and needs to take a breather. Noted technical analyst John Murphy says, "The inability of gold stocks to maintain their recent upside breakout is a short-term warning sign for them and also for gold itself which is meeting some resistance at the $1,000 level." Meantime, other technical analysts point out that gold and gold stocks, up until the past few trading sessions have run higher, counter to the general market. This is viewed as positive, since the broader market sell off during that later part of last year saw pretty much everything taken out behind the woodshed. The SPDR Gold Trust (GLD), the world's largest gold ETF, hasn’t added any ounces in the past four trading sessions. Even on the day, gold touched US$1,007.70 an ounce, the ETF failed to add any ounces to its holdings. The SPDR Gold Trust currently holds 1,028.98 metric tonnes, or 33,082,801 oz of gold.

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