Tough to stay bullish on gold

Author: Adam Button | Category: News

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.

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