Gold remains very attractive in the context of what we see on other commodities. Although it does not always fit into the space of commodities (not used in the industry) and therefore less correlated with other raw material price dynamics, and this was the case in recent weeks, particularly noticeable. Gold is negatively correlated with most other commodities this year, against a moderately positive correlation that exists in normal times.Technically, yesterday's upward movement casts doubt on a downward trend this year, a break above the trendline, which is formed from 3 January. Thus, another close above this line (around 1300) now can send the gold in the consolidation phase, at least technically.
But as an illustration of the mood changes looks good statistics on the movement of funds ETF, which hold gold. There from the beginning, there has been a decline of 3.3% and now, with a peak in mid-December - 4%. We've previously talked about the connection of gold with interest rates, and it remains very significant. A significant part of purchases of gold last year was caused by the escape of those currencies which were previously considered secure, as soon as the Fed started talking about the QE2. And still remain concerns that the Fed can find followers. In January, the polar motion were, and still Trichet poured bucket of cold water yesterday, but still remains the dominant story of rising interest rates as the euro and sterling in the near future.
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