And the glittering metal may chase higher up the charts this year as our economy heats up but for now we see downside potential for XAU in spades. First, commodity stocks rise and fall ahead of the underlying. Second, this parabolic move was based greatly on technical buying and small speculator short squeeze. Third, COT report shows gold commercials at a five-year net short position from being net long just three weeks ago, an incredibly quick move. Fourth, small specs are at a five-year net long position as speculation runs rampant.
Lower prices are almost sure to be the result from there.
Always looking ahead six to nine months while ignoring what occurs today. Even the Market Maestro himself said in Thursday's speech the economy will pick up later this year. Because equity markets are no longer a discounting machine. Too many momentum players now involved for that. Those days are long gone and so is the notion that markets will look further forward than the next deadbeat analyst's dart throwing session for picking price targets on today's hot stocks.