This week one of the major global equity markets confirmed a bear market move by seeing levels drop more than 20% below their highs earlier in the year. The fact that this market had also been one of two major contributing factors to the broader global equity market rally has been almost completely ignored. Over the last four trading days gold has had an almost 30 point range, and volumes in both physical and futures have, to a certain extent, dried up.
If you are a fan of gold I suppose the positive to be taken out of this is that it has held its ground, and as time goes by this sideways movement is ultimately bringing it closer to breaking the downward trend. The more pessimistic would point out that although the economic picture is not great the US markets are slowly improving the fragile recovery, and so far there have been no fresh issues that central banks have had to deal with.