Gold has been down over 25% this year. YTD AU has not seen such negative performance since 1981.

Gold has been down over 25% this year. YTD AU has not seen such negative performance since 1981. Bears feel that AU will slip below $1,200 and bulls predict that AU has the possibility to reach as high as $2,000.  We expect to see a continuation of short covering in the markets until the Fed  meets on Dec 17-18, which is when investors will re-evaluate their positions. The strong retail figures from yesterday increase the likelihood that the Fed can begin tapering at its next meeting, however market consensus is that a reduction in monetary stimulus will be seen in March 2014. In 2013, PD saw some gains primarily for 2 reasons: strengthening auto markets in U.S. and China and South Africa supply concerns. PD is expected to continue to remain in deficit in 2014. This is good news for PD because a decrease in supply means higher prices! November’s PPI (MoM) met expectations of -.1% so no surprises there. It’s Friday the 13^th so be sure not to walk under any ladders J