Capacity Utilization makes me Bearish on Gold

In my previous post about capacity utilization rates (which can be found here), I warned about a peak in capacity utilization. On 16 March 2012, the capacity utilization was released to be 78.7%, down from 78.8%. Although a minor decrease, it is the first time in two years that the capacity utilization drops (Chart 1). This has an impact on gold, see the analysis of the technicals here: February capacity utilization indicating a drop in gold prices