Not All That Glitters Is Gold...

... including..er...gold itself. The front month contract is already trading at $521.20, a good 14% higher from just a month ago... It's hard to say why investors are buying it. As I have already suggested previously, I don't believe in the "diversification into alternative assets" principle. Having said that, one can't argue with momentum. Gold at these levels has reached a pretty good long-term resistance however, hence I would be tempted to recommend for long investors/traders to look to exit their positions around here. Those who have a death wish might even dare to put on some speculative shorts here with some tight stop losses around $535. I have a feeling we are going to see a good retracement in this shiny metal commodity over the next 3 months...