Contrarian Investor: Could gold rally end in a rout?

Investors pile into asset class post-Brexit vote

I always find it curious how investors react to political crises. As Brexit fever was in full throttle, thousands of perfectly sensible folk decided to dump their cash into gold coins. Why on earth would anyone think that Brexit would make any difference to gold prices?

I suspect I am missing the point. Brexit was almost perfectly timed to fan the flames of already growing alarm among investors about impending recession, diminishing returns for QE, and a more general sense the debt bubble may burst soon.   Anyone looking at one-year charts for the shiny stuff can see a clear bull pattern emerging, with the dollar spot price pushing decisively past 20- and 200-day moving averages. A move past $1,375 seems to be the next target if the trend lines are to be believed. In fact, the gold price in dollar terms surged to nearly $1,360/oz, which is its highest l...