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James Turk - Big Money Buying Pullbacks In Gold & Silver
Gold is attacking $1,250 in European trading and silver is near $19.50. King World News reached James Turk today in Spain to get his thoughts on the strength in the metals. Turk made some fascinating observations ahead of the 3 day weekend:
September 2, 2010
James Turk: Eric, silver has been strong over here in Europe, I’ve been watching it here this morning. It is being driven by strong demand for physical.
Today is sort of interesting because we have a 3 day weekend, so I expect some short covering ahead of that and I expect gold and silver to close strong this week as a result.
We are getting closer to that upside explosion when silver closes above $20.50 to $21.
We had a setback to $19.20 and here we are at $19.50, so the big money is on the sidelines waiting to buy every pullback.
When asked about the change in trading patterns for both gold and silver Turk noted, “The difference is that as this accumulation pattern developed, people were waiting weeks for pullbacks to develop, then they decided to buy pullbacks that developed over days. Now, at this point, the big money is buying pullbacks that develop over just hours.
James is a market veteran and as such he is noting an important change in the trading habits of both gold and silver. Pullbacks have been short and shallow in the metals and then the markets immediately turn higher.
Eric King
