Where are all the Gold Bugs?
The decline in GDP saw gold and silver spike yesterday with the thought that the fed will still be around a little while longer. But before that report traders have been selling into any Gold & Silver rally with the thought that the economy is getting better, risk appetite is gaining, funds are unwinding the safe haven trades, and ultimately interest rates are going to start rising.
Gold Selling into Rallies the new sport?
This is the reason that prior to yesterday Gold and Silver have not been participating in the Risk On rallies in markets. Sure they spike a little at the beginning of the year, or week, etc. but soon are sold into rather heavily.
Now granted gold and silver haven’t been putting in new lows, but are sort of just stuck in trading ranges. However, it is to be noted that they are underperforming other asset classes right now. All of which brings me to the question of whether Gold should be sold into on any spike upwards?
Have we seen the Near-Term Top in Gold?
Have we seen the near-term top for Gold and Silver markets for two, three, five years? I think it is too soon to tell as Spain and Greece’s troubles I expect need to be dealt with sometime this year, and then we will start to have fund flows back into bonds and Gold and Silver on European Solvency issues. However, I have serious doubts that Gold will put in a new high for 2013.
February 4th, 2013