The cost of money has a huge influence on gold and this was illustrated perfectly at the back end of last week when global bond yields pushed higher in tandem with the oil price. It’s a simple equation at the moment, in the short term if you believe a Middle East resolution is imminent, buy precious metals&/or related stocks otherwise be patient.
Golds more than $US1,100 (20%) retreat from its panic January highs is a great example of stampeding speculation & euphoria getting way ahead of reality.
- We can see gold testing below $US4,500 this week as bond yields continue to weigh on precious metals.
MM is cautiously bullish towards gold ~$US4,500
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