Tue 08 May 2012 14:15:00 CT
A massive range down failure on the charts sent June gold prices down to the lowest level since the first trading day of 2012. With deflation seemingly more likely than inflation and recession expectations starting to replace growth views, it is not surprising to see a wave of longs run to the sidelines. For the time being, expectations of a return to debacle conditions in the Euro zone appears to have out gold, equities and most physical commodity markets into a full retreat. So far, the Fed doesn't seem to be overly concerned about the recent evidence of slowing in the US and so far they don't seem to be overly concerned that events in the Euro zone might trip up the feeble recovery pace in the US. Many traders also seem to be rushing to factor in a negative auction result on Thursday morning from the Euro zone.
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