Gold as of this morning is near 1242.00 USD and is approaching an important support level. If the precious metal should break below the 1240.00 ratio pressure could continue to mount as day moves forward and into the weekend. Traders may not be willing to hold onto positions going into this weekend which could also help bears who continue to control the commodity. One question besides speculative plays that must be considered in the Gold market is how global inflation is being perceived and acted upon by long-term investors. For instance German Prelim CPI reported a drop of minus -0.6% yesterday and for the moment (short-term) inflation seems like a secondary concern from a psychological standpoint in the market. Meaning short-term pressure will likely continue to be found in the metals, particularly Gold – long-term players who have deep enough pockets however may be eyeing an opportunity to accumulate.
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