) has broken the 200mda average this morning despite some
conditions that are supposed to be ideal for gold: WAR.
) continues to stealthily build troops at the border of
Ukraine. Tensions are escalating, and this could be a major
challenge to the geo-political landscape.
Meanwhile, Japanese (
) buying of gold bars is at record levels ahead of the
consumption tax hike in Japan.
Also note that the Chinese (
) central bank buying of gold continues in abandon.
Gold can't rally. And gold won't rally as the Fed continues
and possibly steps up a process of normalizing interest rates.
Yelllen's comments on Fed Funds rates has served to push
gold lower and was the catalyst to breaking what I have described
as just another viscous bear market rally for gold.
Our target on gold remains $1,100 which is the level we feel
balances out real fundamental demand from central banks and
traditional industrial use, against where the yellow metal has
seen a Fed inspired bid that began truly distorting prices in
late 2008 and peaked into September 2011.