April 17, 2024 - (Gold Market Wire) - Gold is making a slow run towards £2400, having made the leap above $2350 and fending off the reversal from Friday's Flameout. Call us moderately surprised, as the retreat below $2350 for the Friday close sure looked like the start of a reversal. Not to be, such is the current strength in the market.

The market as we see it set is as follows:

And the same thing zoomed:

An interesting picture, no doubt. But what is it telling us?

Well, unlike Friday's fun and games, it looks like there is some strong "program buying" in the market, which is simply on an accumulation spree. That tells us it is likely to be the work of one or several Central Banks. If we coast through $2400 and just keep charging in this manner, it will confirm that thesis. What is happening, at first glance, doesn't appear to be the fun and games of locals. And its not the old "buy in the East sell in the West" game we saw in the 2006-2011 period. That tells us that the banks and the CBs are on board.

The calming down of volatility reveals institutional buying. We are almost 14 days into the trend line, without interruption. We are out of the trading position, but if this keeps up, we will be getting back in. We wonder...."what is keeping the locals from ripping the flag up and down the mast?" Are they getting concerned that the buying is going to keep right on going? If the banks had evaporated the sell side, we'd be flying to the moon right now, so we believe that professionals out there - buying in the cash markets around the world, and gently laying off on the futures side, i.e. - Market Makers Dream.

Lastly we'd be remiss if we didn't opine that there must be significant buying coming out of the West Side of the Gulf right now. There's a good probability that is what is keeping us up here, and moving us slowly higher. Again - big institutions - not locals.

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