Gold is in awkward phase

"I have previously mentioned that gold was in an awkward phase as the ‘Armageddon, economic collapse and mayhem’ buyers since October 2008 drift away and have yet to be entirely replaced by those who want a hard currency. Additionally, pending IMF sales have not helped sentiment recently.

“Also, with a stock market rally underway, and some appetite for risk returning, gold faces more competition. Additionally, people struggling to pay bills, not least those from India, Western Europe and the USA, have been swapping gold trinkets for ready cash. A metallurgist friend with a jewellery store in a prosperous section of Massachusetts says that the gold scrap trade has kept him in business over the last year. Lastly, this is a quiet time for gold, which tends to do best on average in 1Q and 4Q."

David Fuller (Fullermoney)