The rapid upmove in the precious metal, has given it front page coverage in the financial media.
The USD slipped below 76 on the USDX.
Ongoing momentum could depress it still further, despite the fact that it looks oversold
"""As David Rosenberg said - FEAR seems to be driving all asset classes these days.
Equity - Fear of missing the party
Bonds - Fears of deflation and Equity collapse
Gold - Fears of ''the end of the dominance'' of the USD, and general uncertainty. """
The biggest threat to the ongoing gold rush in my opinion would be a steep reversal in the fortunes of the equity markets ( that look overbought - ie: 60% rally despite rising unemployment) that would result in an equally sudden rebound in the currently oversold USD.
Ofcourse I could be wrong and gold prices could rocket still higher. ( I wouldn't mind it if they did!!!!!)
But I advise caution as far as fresh buying is concerned.
Buying anything near its all time highs( even if only in nominal term) always has its risks.
So place your bets accordingly!
No comments:
Post a Comment