Gold took off this morning booming over 1200 on the news of the dissolution Japan’s lower house of Parliament

Gold took off this morning booming over 1200 on the news of the dissolution Japan’s lower house of Parliament by Prime Minister Shinzo Abe.  The shock of yesterday’s slip into recession by one of the largest economies in the world shocked the Prime Minister as much a s the world. His actions indicate that he is gathering support to continue the country’s easing policies which was the wind behind the sale of the precious metals markets this morning. Unfortunately for gold longs, the yellow metal was not able to hold above the 1200, after a positive Economic Sentiment report in Europe was much higher than expected, which does not bode well for higher prices. The metals though holding ground of late does not seem to have enough strength to enter its former charge to the upside any time soon. Bank of Japan’s rate decision is not expected to surprise overnight. Tomorrow’s FOMC report is the next news to watch.