gold edging toward 1700 and aud nearing par

QE fever is in the air with much expectation of Thursdays ECB meeting and of course the letter by letter analysis of dovish comments from Bernanke.

Followers know that I think both will ultimately disappoint, but I have learned that when momentum takes over that does not matter until disappointment actually arrives.

NST charts notwithstanding, right now the fundamentals suggest NST should be riding higher. I think the world has finally figured out that that there is a reason for the carry on the AUD and we will break below parity even if BB does buy some mortgage backed securities (I continue to doubt it).

Gold may follow the momentum until such time as FOMC or ECB stick a pin in the hope of QE.

ECB will do something, although it will inevitably fall short, if not in the announcement, rather when the Germans qualify it the next day.

FOMC may just be able to jawbone enough to keep hope alive for another month without actually doing anything.

Other than central bank decisions, economic data that will move gold this week is the US Jobs numbers. If they are sub 130k then the markets belief in a FED intervention will see gold spike.

Bottom line is that AUD down is great news for Aussie gold.

Gold price up may not last.

For now both are headed in the right direction.

JH certainly read the gold break out.

Not sure what to do with Reiners Gaps in the NST chart.