I've also noticed the price of gold has been a lot more stable recently than it has been in the last few months.
I have been waiting for a dive below USD300 but it has not occured yet. I wonder how significant the reduction in forward selling has been in maintaining the POG.
I would like to think gold is holding it's price for that reason and also because of the fall in production levels. That,in my opinion, would give gold a better long term future than the threat of war or the meltdown of the World economy.
I have a (non orthodox) view that should the equities markets and currencies crash gold stocks are just as likely to go down in the general crash of confidence.
In fact I've noticed (despite the inverse price relationship that generally exists between the non gold equities and gold) that when the US market falls dramatically, as it has recently, it seemed to take a lot of sting out of gold and gold stocks.
We should have expected the opposite.
Conversely that may indicate that if gold can maintain its present level then gold stocks could still do well when the wider market picks up some positive momentum.
