Gold has been a great safe-haven early this year
Oil and stocks are back down to start the week as the theme of 2016 reasserts itself following a two-day retracement last week.
Trading may be lighter today because of a quiet economic calendar and because the US East coast continues to clean up after a snow storm. Gold is up $9 to $1106 and closing within striking distance of the $1113 Jan high.
Gold has been a shining performer this month, gaining early and consolidating since. Best of all, it's avoided the kind of volatility that's hit almost every other asset class.
What's telling, to me, is that when other assets retraced late last week, the pullback in gold was very minor. That argues for strong underlying demand and a budding trend.
I made the case last week about why gold could turn into a great trade.
