...look at the percentage of reserves held by central banks in gold. It always has had an important role to play in their reserve asset management. |
Certainly commodities seem to be the flavor of the month at the moment and the funds have continued to buy. |
Gold is starting to feel heavy again; there aren't that many more buyers out there. |
People are still having worries about the economy and inflation. They still feel they want to have gold. |
The dollar is not doing all that badly and the Dow [Jones Industrial Average] has been doing pretty well overall. It doesn't make a lot of sense to cut U.S. rates aggressively at this point. |
The market has been sitting very long for some time and as such it expects to see some profit-taking. |
When this sentiment-driven rally finally comes to an end, the pullback we are going to see is going to be aggressive. |