Global Macro Commentary

I’ve recently become bearish on gold for short term techincal reasons, but I just could not ignore the flurry of political uncertainty as of late. Namely, I’ve become very wary of recent political developments surrounding the Chrysler/GM bankruptcies, bank stress tests and new tax plans (to shut down tax havens). After a couple months of shutting up, the government is back at it again. I’m also seeing signs of recovery in gold and silver’s role as the anti-dollar. As I said, I’ve been short PM for techincal reasons, but putting these new thoughts together, I decided to cover my gold/silver shorts and flipped back to long. One may think that I’ve been flip flopping with PM way too much, but hey it’s that kind of market, and it’s all about catching a trend before it gets too crowded (whether it’s down or up).

Gold: 3-year (I’ve been focusing too much on short term charts…here’s a look at the bigger picture)