pog, page-19

Until Modi lifts the restrictions on gold imports the POG will be under pressure even if nothing else were going on. However, we have another QE tapering announcement coming in about 2 weeks (17-18 June) plus gold being in its seasonally low period and tax loss selling makes it difficult to justify jumping in to buy any goldies (unless there is a compelling new story).

Gold could always get a 2-4 day rally of sorts before the Fed meets, but there is usually a selldown just before the meeting, so why put money down on the golden Casino. Ukraine fighting is being discounted by the market just like all those hot spots in the middle east have been, and the Chinese are waiting for lower prices - gold buying fatigue has set in there after they saw the POG fall away and the credit stopped flowing as freely as in the past.

On the other hand (yes we still have that other hand), the powers that be could tank gold down to USD1000 during the seasonal low to get that final flush out that Rick Rule and others expect for a proper market bottoming process.

loki (just sitting on the sidelines watching all those pretty goldies walk on by).