GoldLate last week I was working on a Genetic Algorithmic model and analyzed the current state of the market with it.  I wasn’t surprised at all when I found that Gold, not necessarily oil, is the major driving force of the sentiment of the market right now.  It doesn’t matter how steep or flat the bond yield curve goes, the higher the price of Gold goes, the lower the markets go.

Eventually Gold will run its course and the markets will recover but the key price level right now for Gold and the markets is $900/oz.  The markets will tread higher for any price (and dropping) lower than $900/oz.