The stock market dropped dramatically in the morning, bounced then sold off near the end of day. S&P500 down 2.79%. Gold however held up very well, selling with risk off mood but bought up on the dip showing the bulls are back in control of this market. It isn't surprising that gold is catching a bid while other risk assets tumbled. With Yen intervention Sunday (Sharp 5% jump) Night and Greek Referendum (over 3% drop in Euro) called today, major currency are at risk of volatile moves.
Continue to watch gold as the US will be entering debt discussions shortly to find ways to trim its deficit.
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