The attached chart shows a couple key aspects of how gold has traded in the last year or so:

Gold bullion in the vaults at the Bank of England Credit: NewsCast www.newscast.co.uk +44 (0)20 7608 1000 No archiving

  1. Gold (GLD, quote) is not afraid to have some rips in the middle of a bear market but often they are heartbreakers
  2. Gold is ultimately governed by the 200 day moving average and we are getting close again; arguably gold is overbought
  3. Gold has not necessarily “seized the day” during what appears to be classic rally drivers like China (FXI, quote), credit contagion, and slowing growth so hard to see this trend changing
  4. The Fed might let the genie out of the bottle today and give it room to run

Gold may be rallying but there are a couple key points to remind on:

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