Yesterday was a very quiet day in the market.

Yesterday was a very quiet day in the market. Peace talks between Russia and Ukraine look like they should keep a damper on any attempts to the upside for gold but there is still no confidence that there will be any success. Concerns that the ECB will begin a more expansive monetary policy has raised demand for the yellow metal this morning driving the price higher. Finally the positive Consumer Confidence combined with the jump in Durable Goods report this morning up 22.6% will certainly keep gold from any substantial rally. The positive US numbers are supportive for demand of  the more industrial aspects of Pt, Pd and Ag.. Palladium remains firm in the face of the Ukraine and Russian talks which may be an indication of what confidence level for peaceful resolution to a conflict that has seen over 2,000 deaths to date.

Retail Sales report due out tomorrow is probably the most important number to come out this week.

Retail Sales report due out tomorrow is probably the most important number to come out this week. Even if it is better than expected will it be a drag on the gold price? It is doubtful considering that a stronger dollar combined with a strong equity market has not been able to do so. The global political crisis is what is holding gold above the 1300 level and the situations are not going away any time soon. Gold looks to be firmly in the bull camp for now and may lead the way higher if tensions in the Ukraine or Iraq escalate.