Gold Bugs Are Losing Their Minds Again (GLD)
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SPDR Gold Trust ETF (NYSE: GLD) and the spot price of gold is facing a bit of a dilemma, it doesn't know which direction it wants to go. On the one hand, the crisis in Europe seems to be exactly what gold bugs have been pounding the table about for years. After all, it does appear that the world economy is well on its way to hell in a hand-basket. Imagine getting an ear-full from a gold bug the day after the European Union breaks up. "I told you so. Didn't I tell you? I was right. You see. We're all screwed?" Yeah, yeah, yeah, now shut up.
Not having to hear gold bugs tell you they were right is perhaps the greatest motivation for success at the EU summit this week. There's a thought, why not force Angela Merkle to spend a night with a gaggle of gold bugs? That should light a fire under her German caboose.
The interesting thing about gold is that although the stars appear to be lining up for a major bull rally, good ol' GLD is doing everything but heading north. It's heading sideways a bit, a little lower, back up again. It is pretty much acting as decisive as a toddler. This has gold bulls looking for an excuse, any fundamental story at all to rally around. Greece isn't working. The Fed hasn't played along. I know, how about Monsoons?
I'm not making this up, gold trader are pointed to the monsoon season in India as a reason to go long. If you don't believe me, just read the Wall Street Journal. Here is an excerpt. "India's gold demand could revive from a prolonged slump if predictions of normal monsoon rains over the country are realized, a top industry body executive said."
Sorry, bugs, it's going to take more than a little rain to get SPDR Gold Trust ETF (NYSE: GLD) to rally. Maybe forget the weather forecast all together and keep an eye on the inflation forecast. Just a thought.
Not having to hear gold bugs tell you they were right is perhaps the greatest motivation for success at the EU summit this week. There's a thought, why not force Angela Merkle to spend a night with a gaggle of gold bugs? That should light a fire under her German caboose.
The interesting thing about gold is that although the stars appear to be lining up for a major bull rally, good ol' GLD is doing everything but heading north. It's heading sideways a bit, a little lower, back up again. It is pretty much acting as decisive as a toddler. This has gold bulls looking for an excuse, any fundamental story at all to rally around. Greece isn't working. The Fed hasn't played along. I know, how about Monsoons?
I'm not making this up, gold trader are pointed to the monsoon season in India as a reason to go long. If you don't believe me, just read the Wall Street Journal. Here is an excerpt. "India's gold demand could revive from a prolonged slump if predictions of normal monsoon rains over the country are realized, a top industry body executive said."
Sorry, bugs, it's going to take more than a little rain to get SPDR Gold Trust ETF (NYSE: GLD) to rally. Maybe forget the weather forecast all together and keep an eye on the inflation forecast. Just a thought.
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