The gold market has vaulted through the $950 level, and now target higher prices. Commodity funds have once again returned to this market in force as the weaker USD, high energy prices, Iran tensions, equity market weakness, and the lack of an expected Fed rate hike to stave off inflation ALL provide an environment for soaring gold prices. Each of these factors by itself is enough to move gold higher, and the combination of all of them together has seen gold vault through resistance at $950 and continue higher.
I have touted for some time that dips in June and July are buying opportunities for the coming gold rally into year's end. The market has taken off a bit earlier than expected as the factors described above have allowed for aggressive fund buying in gold.
Seasonal strength returns early - indicative of strong outlook for the precious metals moving forward.
Dave Meger
Alaron Research Team
800.935.6484
dmeger@alaron.com
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