Gold at the highs of the day
The technicals in gold are important and it's imperative to note the positive correlation with equities right now.
By any fundamental measure, gold is absolutely sparkling right now. The only real risk is that economic activity is so depressed that jewelry sales crumble and some battered country is forced to dump its gold reserves.
On the flipside, we have central banks openly talking about monetizing debt. Fiscal deficit numbers everywhere are barely believable. Either those are miraculously fixed or we're in a permanent regime of Japan-style fiscal policy.
Fiat currencies are in big trouble.
The winner has to be gold at some point. So far, investor enthusiasm is surprisingly tepid but price action is its own best advertisement and if gold can break $1750 to a new 8-year high or break the all-time highs near $1900 then there will be a flood of money into precious metals.
The timing right now is the trick, or setting up with a margin of safety so the timing doesn't matter. I tend to think that if there was going to be another deeper correction it would have happened in the past week on the fall below $1700 and the March high. If we can close above $1705 today, I think gold is set up for a run.
If you missed it yesterday: Bank of America boosts 18-month gold target to $3000
