Thu 31 May 2012 14:27:02 CT
The gold market waffled around both sides of unchanged today but generally favored their physical commodity market standing instead of the flight to quality standing. In other words, fears of slowing, deflation and adverse currency market action appears to have emboldened the bear camp and the hope for a flight to safety into gold has been tamped down. However, in the event a more serious Euro zone threat is seen ahead or there is some form of massive coordinated global stimulus effort that could spark another short covering bounce similar to the bounce that was seen in the second half of the Wednesday trade. For the near term gold looks to retain a tight positive correlation with US equities.
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