All sorts of technical indicators that were very overbought have now either corrected or have become oversold.
There are increased geopolitical tensions, mainly from Iran. Also, the topping of the U.S. dollar is now evident.
After an overflow of bullishness at the beginning of the New Year, the gold market has entered a broad trading range between $535 and $570. This is allowing a very overbought situation to correct itself and set the groundwork for an assault on $600 this spring.
The news of an attack on an oil facility in Saudi Arabia is just an example of the many different geopolitical events that underpin the secular gold bull market.
Strong physical and investment demand, increasing geopolitical concerns here and abroad and the likelihood of a resumption of the bear market in the U.S. dollar, are all factors that should drive gold towards its all-time highs.
Since bottoming in 2001, gold has seen a two-steps-up, one-step-back rise, and Monday's big drop is nothing more than the start of the one-step-back part.
China's announcement of wanting to diversify their foreign-exchange reserves holdings is going to have a profound effect on financial markets worldwide.
I believe the proposed silver ETF can be the biggest thing for silver since the Hunt brothers.
The U.S. dollar counter-trend rally is over and a resumption of the secular bear market is under way. This and geopolitical news out of the Middle East are the fuel for a run to $600.
Copper continues to defy gravity and crush bears like me. There's no rhyme or reason for it -- but tell that to our margin calls.
