As suggested by our report last week gold did de-link from direct inverse relationship with stock markets and now seems to be following its own fundamentals. A weekly close below 305 dollars/oz is a bit of a mini-disaster and has shaken the faith of investors in the gold market. Readers will remember that in one of our earlier reports we had very clearly mentioned that gold will continue to rise as long as it appears that there are no invisible hands at work. It appears now that most of the rise in gold price in the past couple of months was on the back of speculative derivative strategies involving equities, currencies and gold and the players in question have played the market to the hilt.
NSTL
