POG correction looks like a pure technical play in the CME by...

POG correction looks like a pure technical play in the CME by taking advantage of China being on holidays. There are so many drivers underpinning the games played in the POG. The positive from the dumping attack is that the traders now have funds sitting on the sidelines getting ready for the next push up.

I have posted the drivers for the POG on the Gold threads before, but here is a copy for those interested:

"There are many drivers for the POG. It has one of the most complex market dynamics of all. Here is a list of drivers I have compiled over the years. It would take a PhD thesis to explain.

Factor 1 - Mining supply and demand from Central Banks, jewelry and industry.
Factor 2 - Inflation hedge, safe haven and portfolio diversifier by the big players.
Factor 3 - Money supply, public debt, oil price and stock market gyrations or situation.
Factor 4 - Bond market, credit spreads, yield curve and financial sector strength/weakness.
Factor 5 - GDP, labour market, inflation and consumer activity statistics worldwide.
Factor 6 - Gold price manipulation on the futures market.
Factor 7 - The gold market activity on the LBMA.
Factor 8 - Activity of Gold ETFs and other Comex activity like options.
Factor 9 - Gold lending and swap market activity.
Factor 10 - Peaks and troughs in geopolitical risks.

Good luck to anybody trying to master that myriad of factors that drive the POG more or less at any point of the day/week/month/year."

According to my guestimate Factor 6 is at play, I suggest due to timing factors based on the fact that bullion banks were massively offside by the increase in POG since early 2016. That factor is underpinned by recent softening in Factor 7 and Factor 8. In summary ........... last week the time was right for the market makers (aka bullion banks) to trigger the robots.

Anyhow, NST looks to be well oversold and offers opportunity for the astute IMHO. That is not to say the SP won't go lower so acquire incrementally. This company is a growth stock with upside likely greater than any down turn in POG over the long run. The simple technicals seem to confirm time to buy more as well:



Cheers