The recent wave of disappointing economic data has caused investors to rely on gold as a risk-free investment with the expectation that the Fed will expand economic growth. GLD typically has an inverse relationship with the USD and is an indicator of economic health. Last Friday GLD shares spiked over $4 after European greed on a plan to save European banks.

Today’s GLD rally is shadowed in other markets with major stock indices slowly rising, along with a massive $3.90 gain in WTI crude oil. In my opinion, this looks like people are getting tired of low-yield “risk-free” investments such as U.S. Treasuries and are willing to buy gold while the opportunity cost is low.

My outlook on gold remains bullish in the short-mid-term simply because I do not think that the world is not as healthy as market prices project.