My observations:
For the last 18 months, the price always go down at the end of month, especially delivery month like Feb. So I feel at tomorrow morning, the price will be similar or lower than now. However, since the commercials need to cover first so it usally goes up in the afternoon. If price goes down in the afternoon, it means that commercials are not going after gold and they actually want cover silver position. This will be a very touch battle since their silver position is huge and if they want to cover, they need to knock down gold another $100 to screeze the silver longs out. I don't think it is possible since they will need hundred of tons of gold from governments. They already spend 6-24 tons of gold a day (according to London trader) now to maintain the current price. They have no silver to dump unless they borrow from SLV.
I feel that the price will get better early next month if tomorrow afternoon price rises. The technical setup for gold is great since commercials never has so little gold shorts. Just for gold alone, I feel the price should rise. My only worry is their silver position. Many years ago, a great gold expert John Embry suggested that the final tool for commercials to control silver price is to dump gold and cover silver. It looks like they are doing it. Silver is much stronger relative to gold now.
So my suggestion for tomorrow looks like the price will be down in the morning and up in the afternoon. If it goes down in the afternoon, be careful next month.
I am not short term trader so the above is pure speculation based on my experience.
