Should we expect a lower prices?
Or is this swing lower being used to accumulate at better prices by the large accounts. As always we find out how strong the bull hands are when support is tested. It is very obvious the gold price is range bound, and those who follow gold also know big moves higher mostly only arrive after the shorts have had a chance to clear (options positions and short futures).
There are those who say higher interest rates and the USD is bearish for gold, it some cases this so, but it is not automatic relationship as gold can and does rise (or at least hold its ground) with the USD, more so when the market knows higher interest rates will most likely explode the debt bomb. A corporate and sovereign debt bomb is what we have, and it is now widely reported the US annual interest rate expense will overtake US medicare costs. WOW!
Mr Market does not treat the weak hands well, GLD could test $100 or the test could be over at $110. Retail traders react to price action, retail traders need to wait for confirmed strength to ensure higher price are going to follow. But we do know the ponzi buy back stock market music will stop, and that sir is why gold is still above $1000 once ($100 on GLD).
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