Greetings From Hong Kong.
The Sovereign Debt Crisis continues to unfold and governments everywhere are still trying to use short-term measures to solve a systemic problem that requires major restructuring of the world economy. Spain revealed yet another plan to cut 40 billion Euro from spending and it will take 3.1 billion from state employee pension funds to help pay for the crisis. There is no way out and yet government keep trying to maintain power desperately praying for the day when they just wake up and it will be business as usual.
In gold we have a Daily Bearish at 1754.4 and that held and thus we are still looking at perhaps one more new high on Friday. The next target week will be 10/08. Overhead resistance has not changed and we should expect to see a test of that level.
I will be updating next week from Beijing.
