FA,
Probably more due to "hedging" by speculators. Gold is overbought. The present run is premature. There has to be a pullback (great time to have some cash on the sidelines). The real "parabolic move" shouldn't happen for another 2-3 years. Then again, electronic trading has created a different world from that of the late 70s and early 80s.
Big part of the move could be due to the political climate and Osama coming out of his hole. He is now making threats that another attack on the US is in the planning. "God willing", he says, "we [those of us living in the states] will all see the event in our homes". Of course, if we evacuate Iraq Osama wants to call a long-term truce. I wonder why GWB never focused on getting rid of Mr. bin Laden instead of invading Iraq? Now our forces are an arms length away from Iran's military. Isn't everyone happy that we armed Iran? Pure genius. Pure genius.
Peace,
Market Data 
Markets 
AI
