So what's the thoughts on POG for the week ahead? Will it flip flop back under $1200 or confirm the close above & extend gains?
A couple of points in the mix, some I don't think the market has anticipated at all yet.
Sudden very early cold snap in Northern US. Very early for this amount of snow in the likes of New York. Remember what the severe snow storms did to the US economy in Q1 this year? Could we be in for a repeat?
Clamp down on global tax avoidance if implemented will impact corporate earnings.
Growth in Europe & Japan looking decidedly soft, the US is not an economic island despite what Yellen says.
Seasonality of gold, remember what we did this time last year?
Other considerations are
EU QE possible further weakness in Euro & Jpy
Possible changes to Indian gold import rules.
Personally it looks like gold is setting itself up for a nice run higher into year end, however I am well aware I am long gold stocks so could be a bias coming out.
What's others thoughts and different drivers you see that could influence the POG into year end?
