After nearly hitting USD $1280 an ounce yesterday, gold prices pulled back, currently sitting just above USD $1255

After nearly hitting USD $1280 an ounce yesterday, gold prices pulled back, currently sitting just above USD $1255. The strongest performing major asset class since the Dectaper was announced, gold prices are now up 6.5% from their intra-day low on the 31st Dec 2013. Last week we saw news that India might ease up on some of their import restrictions around bullion helping investors look at gold in a more favourable light, whilst China is doing what China does, importing 126.6 tonnes from HK in December, 18% higher month on month and 11% higher year on year. I'm neutral this week ahead of the Fed. They should 'taper the taper' in light of weaker data/EM contagion fears, but Bernanke has his legacy to protect, and Yellen won't want to panic. Other news of note was the FT article re German gold repatriation. That story will have legs in 2014 More thoughts here (VIEW LINK)