Gold This Morning: Fed Chairman Goes Prime Time --Jon

Read My Lips, 'There will be no deflation'....Active overnight trade has FEB gold up around 10 bucks from Friday's close, but in reality it's unchanged as electronic trading after the close Friday were at current levels. The GSR has eased to ~47.5 this morning as silver is on a tear possibly on the verge of going parabolic as it clears the big round number of $30 fueled by ventings from blogosphere ideologues and associated UFO zealots. Open interest for gold remains under 600,000 and the COT report this weekend showed the smart guys (big specs) getting longer and commercials lightening up but not getting short. Small specs cut back back on longs and shorts significantly (the odd-lot signal). Option vols eased from last week's highs and RSI(14) ~64 while not a trampoline should certainly not inhibit aggressive buying. So let us return to the words of our all too human Fed Chairman...they are not in the contemptible vein of the GS Chairman describing their efforts with his odious remark that 'they were doing God's work'. Nevertheless Bernanke was the regulator of the scuzzy mob that brought us here and I for one am not giving him a pass for now sanctimoniously stating that he is taking the only available course. Today: Remain long and buy dips; you may have to compete with the shorts at those entry points.