Metals Update

Gold support at $1320 held  and attracted a decent amount of buying. The buying was not enough to push it up significantly on the day but it was enough to reject the lower support level which is a friendly development on the price chart. It looks as if the selling is drying up for now in gold above the 150dma.

Gold needs to get back above $1340 in short order to give the bulls a bit more breathing room however as it is not out of woods just yet. Bears are hoping for something in the way of news releases or economic data that will allow them to take out $1320.

Remember that huge rally in the bonds yesterday on the long end? It all disappeared today as this roller-coaster continues.  Bond holders are watching the $CCI and thinking in terms of inflation while the Fed comes in and messes with long term rates as part of their QE2 program. Up and down, up and down, with rallies being sold and dips being bought. It will continue until we get a convincing breakout one way or the other.