Gold has taken and held another piece of territory, consolidating now around $1017. Spot price peek above $120 briefly before easing slightly. $1030.8, the spike high after the collapse of Bear Stearns is the medium-term topside target.
Macro players continue to buy gold with borrowed dollars at little to no cost on the funding side. That trend has been seen across the markets as the dollar supplants the JPY as the global funding currency for carry trades.
Back in the ’80s, the saying on the Street was “buy dollars, wear diamonds”. Today, it is “buy gold, wear gold.”