Gold has had a nice run off the Chinese yuan devaluation news with short covering the dominant reason behind the buying.
Markets that have a decent sized speculative short position are
always subject to bouts of sharp price rises as shorts scurry for cover.
The question is not whether or not shorts are covering – they are. The
question is, “Are there large numbers of specs who are willing and eager
to assume NEW LONG positions?”
For without that, the rally has no staying power but will fizzle out once the weaker-handed shorts are run out. (more)
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