There has been a decent bounce in gold today to $1642 after a fall to $1628 but it’s a struggle to find reasons to be long at the moment.
- Deflation and QE3 is a longshot
- Inflation is far on the horizon
- Emerging market demand is slowing
- The US dollar is strengthening
Technically, the picture is the same. The 200-day moving average is broken and today gold touched the lowest since mid-January. I see a likely fall back to $1525/50 and have lightened my longs to a minimum.
