Inflation Fears Reignited

The inflation fear trade was reignited today after McDonald’s disappointed and existing home sales showed a 1.2 percent decline in June. Following the news, the price of gold climbed 3.17 percent.

Spot Gold Price As Of 7/22/2013

Recent housing market and McDonald’s earnings news seems to have put an end to the market’s “taper tantrum” — at least temporarily. Even with today’s move in gold, however, the price of gold did not break above the 50-Day Exponential Moving Average (EMA). If the price can get above the EMA with any conviction, look for it to head toward the next area of resistance @ $1,425.00.

Note: Charting data provided courtesy of

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