With Chinese New Year only a week away, the case for betting against gold is a tough one to make.
Gold rallied the most in three weeks today, gaining $27 on emerging market turmoil and risk aversion. Prices are at the highest in a month.
Technically, it won’t be easy for gold to move higher from here with the December high of $1268, the 50% retracement of the Oct-Dec drop and the 100dma all nearby.
gold daily
For me the key is picturing yourself in an emerging market. The turmoil right now in Argentina, Venezuela, Turkey, Ukraine and South Africa is a powerful force that you can’t fight until nerves settle.
