While I agree with this write up at seeking alpha from a fundamental standpoint, I disagree with the overall conclusion. For a time, I think this will have a profound psychological aspect on the gold market. Fundamentals need not apply. Thanks goes to Pete.
As part of the G20 Communiqué the leaders called on the IMF to sell gold to support developing countries. While spot gold was considerably weaker on this news, an examination of the statement illustrates the market’s fears are unfounded.