Gold continues to stay near critical support levels. As of this writing the precious metal is near 1236.00 USD and traders tempted to go long thinking that the metal is too cheap had better use risk management. Gold has now been in a bear market for two years and has not been able to escape its downward cycle. Having traded a bit higher the past few months, Gold has now returned to important values and if it is pushed lower would certainly become volatile.
Geo-politics are being watched closely this week, particularly with the Scotland independence vote scheduled to take place on Thursday. The GBP has been fairly stable but is certainly testing support levels, having said that Sterling in the opinion of AdvnatFinance appears undervalued and if the Scotland referendum does not pass it is likely to find support and potentially a flourish of buyers.
While the Empire State Manufacturing Index did better than expected yesterday, Industrial Production numbers were disappointing. Data from the States continues to be a mixed bag. The equity markets represent some of that as caution is clearly being seen and heard among the major indexes.
The German ZEW Economic Sentiment report was slightly better than expected today, but do not expect parades to begin in Europe. The broad numbers for the continent within the same ZEW scope were very negative. And U.K. inflation statistics today were flat to poor.