Alan Williamson
Alan Williamson
case equity funds gains gold investors local lock market markets months move positively prices recent recycling secure sought stock
Over recent months gold and equity prices have been positively correlated. This has particularly been the case in Japan, where investors have sought to lock in stock market gains by recycling funds into gold. With equity markets weakening, local investors sought to secure gains on gold and move into cash.
base distinct drag further given increased metals precious prices recent
Given the increased correlation between base and precious metals over recent months, any further weakening in base metal prices would be a distinct drag on gold.
certainly drift further gold ignoring lower market oil price recent remains sentiment strength towards
Certainly sentiment towards gold now remains positive, with the market ignoring the further drift lower in the oil price and the recent strength in the dollar,
clear markets metals precious prices recent recovering trend
There has been little clear trend in precious metals prices in recent trading, with the markets recovering when they look the most bearish and stalling when they look the most bullish.
broader gold held middle price range recent since stopped
Yesterday's sell-off has stopped the recent uptrend in its tracks, with the (gold) price now squarely back in the middle of the broader $535-$575 range that has held since the middle of January.
buying days few gold hardly last major price rally recent reflects slowing source surprising various
It may well be that the stalling in the gold price rally over the last few days reflects a slowing in inflows into the various exchange-traded funds. With the major source of gold buying drying up over recent days it is hardly surprising that the gold price rally has stalled.
action bias continues early held hold market middle move price range rather recent since suggesting towards trading within
The market continues to hold in the middle of the $535-$575 range that has held since early January, with the most recent price action suggesting a bias towards a move higher, rather than lower, within this trading band.
caused energy higher pressures rise
rise in inflationary pressures caused by higher energy prices.
brings direction fall hoping mind numbers seven votes wherever
Wherever the numbers fall, they fall. I am hoping they fall in my direction. Seven votes brings to mind that every vote does count.
activity aggressive attracting bullish buying chart create dearth dips fund helping higher market pattern remains selling thereby
The activity in the bullion market remains very impressive, with aggressive buying of any dips and a dearth of selling in the rallies helping to create a bullish chart pattern of higher lows, and higher highs, thereby attracting more momentum-based fund buying.
fight foolish sentiment trend
While sentiment is so strong, it would be foolish to fight the trend in prices.
days dollar east few happens market middle next suspect unless
Unless something happens in the Middle East or the dollar has a significant move, then I suspect that the next few days we are just going to see the market drifting.
dollar given hardly heart ignored market move positive surprising though weakness
Given the positive sentiment...it would hardly be surprising if the market does take heart from any dollar weakness even though it ignored the move higher.
either hits quiet remain sideways until
Today, it's been very quiet all day - no real direction. I think it's going to remain sideways until someone hits it either way.