Data Released, Gold Drops...

It's become a familiar routine: good U.S. economic data gets released and gold gets driven down. As of about 9:30 AM ET, the same script was followed; spot gold was driven down from about US$1105/oz to about $1097.

Only this time, the drop mostly reversed. The reversal came shortly before U.S. consumer-confidence data was released, and has held gold above $1,100. This, despite the fact that the U.S. dollar has pared its losses in consequence.

Is the economic-data gold bear trade going sour? We'll see.


Update: Not as yet, though it was close. After reaching about $1,104, gold turned back down right after 11 AM ET and slid down to a little over $1,095 just before noon ET. A rally in the U.S. dollar was behind it. Since that re-drop, it's been drifting somewhat below $1,110. As of the time of this update, spot gold's at $1,096.80.