After treading water to end last week, gold saw a jump in Hong Kong trading to above the $1,720 mark, and another jump on the COMEX open to breach $1,730, now showing a net gain since the algorithms dropped gold $20/oz Thursday morning. The underlying fundamentals supporting gold that I mentioned last week remain unchanged. In addition to that, the dollar has shown a little weakness, easing the downward pressure on gold, and the Gaza Strip continues to burn, contributing to a rise in both oil prices and general unease in the markets.
Today’s most likely news to move the spot price on gold will be the existing home sales report due at 10AM EST. Looking forward, the Greek funding crisis and the elections in Japan (and what it means for Japanese QE strategy) are the big questions in the near future. Both sides are expected to make soothing noises to the market regarding the fiscal cliff, but progress is not really expected until the deadline gets closer.