Alan Williamson Quotations

Given the increased correlation between base and precious metals over recent months, any further weakening in base metal prices would be a distinct drag on gold.

I can't imagine anybody taking any aggressive position for the rest of today.

This is partly as a result of the belief that any dollar strength will be temporary,

The fact of the matter is he is still not in compliance.

With many of the factors that were considered bullish for gold still in place, the risks for gold are weighted to the upside.

Yesterday's sell-off has stopped the recent uptrend in its tracks, with the (gold) price now squarely back in the middle of the broader $535-$575 range that has held since the middle of January.

The activity in the bullion market remains very impressive, with aggressive buying of any dips and a dearth of selling in the rallies helping to create a bullish chart pattern of higher lows, and higher highs, thereby attracting more momentum-based fund buying.

Clearly the outlook for the currency markets, and in particular the U.S. dollar/euro exchange rate will be critical to the outlook for the gold market,

Over recent months gold and equity prices have been positively correlated. This has particularly been the case in Japan, where investors have sought to lock in stock market gains by recycling funds into gold. With equity markets weakening, local investors sought to secure gains on gold and move into cash.

Once again the gold market has surprised by its resilience. Sentiment towards gold was helped by an early recovery in the base metals markets.