The thrill and volatility are gone as the dollar is rallying. Gold and bonds are down big with the bonds down over a full point and Gold down $17 trading at $1,274. Gold is once again at a key decision spot as it falls through $1,280; the pressure from the dollar will be blamed. We will call it profit taking in a rallying equity market.
Collapsing volatility is the biggest problem at these levels, with money pouring back into the equity market. This is a solid buying opportunity for gold and silver because the selling looks a little panicky. The level is solid and there will be plenty of reasons for fear to show up. Equities are priced for perfection while commodities are priced for disaster.
Contributing to kitco.com