Well, today markets around the world seemed to have a bit of a hangover from celebrating not going over the Fiscal Cliff. Stocks were down a fraction today after 2.5% – 3% gains yesterday. Gold and natural gas were down over 1% today. The latter is getting back into buying territory again.
As for gold, it has been relatively flat over the last year and a half. It’s either running out of steam or building a nice long base to support a big move up again. Gold should do extremely well when all this spending, both fiscal and monetary, come home to roost sometime in the next few years. That is the basis on which I continue to support owning gold – long term.
In the short term, the upcoming wrangling over the debt ceiling being breached again may push gold up. It is terribly disheartening to those with a long term outlook that only half a year after hitting the debt ceiling we are at it again.