Mostly: Classical

[Frank Pembleton]

IMO, the only thing that will drive the PoG is DEMAND-- we first seen it with oil, copper, iron, molybdenum, zinc, lead and now nickel, and not because of "declining U.S. dollar, looser global monetary policy, rising Asian demand and geopolitics play supportive roles." but only because of rising Asian DEMAND.

-- and according to the chart posted below, anything other than rising Asian DEMAND is bullshit. Gold has little or no correlation to the US markets nor does it have any proper correlation to the dollar.

Gold has lagged other commodities badly-- Merriam-Webster's dictionary defines "lag" as:

1 a : to stay or fall behind : LINGER, LOITER b : to move, function, or develop with comparative slowness c : to become retarded in attaining maximum value

Let's face it, gold is retarded, but that doesn't mean it won't get a turn at being in a state of scarcity. I believe that gold is a classic late cycle play on the Chinese economy.

Which is why I'm bullish for the year.

...and yes, we are short-term overbought and due for a correction, but my bet is to buy the pullback.