Wed 09 May 2012 14:21:01 CT
While the gold market did manage to reject the initial downside washout today, the recovery effort might have been simple technical short covering action instead of a strong signal of a bottom. In fact, the trade didn't see a noted improvement in Euro zone anxieties and there certainly wasn't much in the way of supportive dialogue flowing from the US Fed. One Fed member suggested that the US might not achieve full employment for years, while another suggested that growth in the US was not robust. With gold and other physical commodity markets apparently in need of definitive easing talk from the Fed some traders probably came away from the trade today disappointed.
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