Here, Adrian Ash reports it 'straight', less some of what I am sure are his personal views on the matter.
Just as Egypt and its implications temporarily mucked up the works on a perfectly unhealthy broad market sentiment situation, so too do some of our foremost analysts below attempt to muck up the gold works with the likes of this:
"[The Middle East unrest] has seen investors return to the relative safety of precious metals," says Standard, "with some exchange-trade funds seeing a rise in gold holdings after last week’s consistent outflows."
Gold investment through exchange-traded products shrank 3.5% last week, according to data from London's VM Group consultancy, compiled for ABN Amro Bank.
But "What we've seen [in Egypt so far] has limited the downside more than anything," reckons Andrey Kryuchenkov at VTB Capital, also in London.
"Technically, gold is still weak, also I think the investment community realizes Egypt is probably a temporary thing."
Get this, gold was topping out well before Egypt. If you are buying gold due to unrest, war or terror you are ghettoizing the ancient monetary metal and falling for the oldest trick in the book. The financial media love to portray gold going hand in hand with these negative things, as if they are all that threaten the system or as if that is gold's primary utility. It's a diversion.
The true financial terror, ongoing and systematic, is that we keep conducting business as usual, going further and further off the books in layering unpayable debt and monetizing same. Gold has been topping out and has some downside targets that have not yet been reached. Meanwhile, it seems its enemies (enemies of sound systems, really) come out of the woodwork with all the old, lame perceptions and associations.
All part of the wash-rinse-repeat cycle my friends. You notice this blog speaking more bullishly about gold of late? Why do you think that is? It sure is not because it was a bullish thing to see gold glad handed and touted throughout the far reaches of the MSM during Q4 of last year. http://www.biiwii.blogspot.com
