Gold close to breaking $1000

Spot gold is currently close to breaking through the $1000 dollar barrier once more. This is happening at the same time as the DOW industrials closed below their November 2008 lowest close, and also below 50% of the 1982-2009 bull run.

Silver has also caught up much of its lost ground last year, now trading above $14. Our models suggest continued strength in the precious metals compared to other asset classes, but a short-term fail to break last year’s high in gold is a possible risk.