Gold rises $17
Gold has recovered just over half of Friday's decline in a bounce to start the week. One of the weekend news items affecting gold is that Congress is closing in on a deal for another roughly $500 billion in spending. We're somewhere in the neighbourhood of a $4-$5 trillion deficit now.
Moreover, I think every dollar spent now correlates to more spending later. We've busted some kind of deficit myth forever and that genie isn't going back in the bottom until there is hell to pay.
So if I look out a number of years, the spending is going to be out of control and that falls on the US dollar.
Technically, I would have liked to see $1700/$1703 hold on Friday and that's where we stalled out again today. There's a good case to be bullish but I think some caution is warranted until that breaks.
