Gold, Mining stocks break out

What exactly is the gold market telling us? Though not unusual to perform well in the run up to Chinese New Year, this year’s run in gold feels different. This time mining stocks, while still extremely undervalued, are picking up steam. could smart money be smelling danger in the financial markets? Well, if don’t think 19 trillion in government debt and 120 trillion in unfunded liabilities isn’t dangerous, then sleep well tonight. The .oo1% are probably re-allocating a few shekels into gold around now. Hard to tell if it will last, look for confirmation & follow through next week. Soft economic number will provide a tail wind for gold,and a softer dollar won’t hurt industrial metal. Remember what JP Morgan said “Gold is money, everything else is credit”.