The one thing which has changed over the last month is the volatility. Prior to the last month we were lucky to see POG rise more then $10-15 per night. In more recent times we have had at least 3 examples of moves of over $30per night and of course the swings of over $80 the other night. A couple of other things I have notices is the lease rate for POG has risen to around 0.68% which I understand is a multi year high. This indicates to me that the leasing out of physical gold is attracting a much higher rate then previously. I am not an expert on this so I will leave it to someone else to fill in the gaps on this topic.
The final thing I notice over the last month is the correlation between a rising USD to 88.9 index points and a falling gold price appears to be breaking down. This is due to the fact that both the YEN and EURO have been falling rather then the USD rising. It is interesting to see USD index at a monthly high whilst POG is holding well at 1207. Always hard to say whether we have seen the bottom, however when such a bottom does occur, it is usually met with extreme volatility as there is a battle between the bears and bulls at the ultimate end of a downtrend. I think watching what is happening with the YEN, EURO, lower rates in China and a probable faulting in the US recovery POG will become very interesting over the next few weeks.
