By Jonathan Barratt

Gold looks to be suffering, as we mentioned last week. The move have not been aggressive, regardless of ongoing stimulus. This is a little perplexing and we can only suggest that traders are sensing that the US economy is not recovering as fast as people thought and in fact that it is slowing or drifting into a deflationary scenario. As such gold has been under pressure. The data out over the next few days should cement some form of direction for the metal.

We have been stopped out of our positions and have no real expectations on a direction. As such we feel the safest place to be is on the sideline.