Gold Market Update
10/17/11
by Clive Maund
CliveMaund.com
Recently by Clive Maund: Silver Market Update
News has come in that "Germany and France are spearheading a multi-trillion dollar “shock and awe” programme expected to be agreed next weekend and presented the following week at the G20 summit in Cannes. The international community may provide further support after the G20 agreed that the IMF should “consider new ways to provide on a case by case basis short-term liquidity to countries facing systemic shocks”. The IMF will report back on what measures it would offer at the summit in Cannes." This should be music to the ears of gold and silver bulls and is of course exactly the sort of "solution" we have been expecting – and since we have aligned ourselves with the Commercials, exactly the sort of solution they have evidently been expecting. The solution involves a massive blast of QE which will be highly inflationary and thus will drive gold and silver and other commodities higher. European leaders appear to have at last learnt this universal solution to all problems large and small from the US, and although it doesn't really solve the problems at all and in fact makes them ultimately worse, at least "it kicks the can down the road" and keeps leaders in power for a while longer.
.
.
.
The dollar has reacted back sharply over the past 2 weeks, probably due to the prospect of resolution of the acute crisis in Europe. It is now oversold short-term and on support near its rising 50-day moving average, and is therefore entitled to a bounce. However, if we see some real progress in Europe and easing of the crisis there in coming weeks, then all of the gains made during the recent rally could be given back – and the rest, as the dollar has only benefitted in the recent past by default – due to its status as “King of Hell”.
In conclusion gold looks set to break down short-term and drop as the dollar stages a recovery rally, but the expected drop should be nowhere near as severe as the September plunge, and it will provide a final opportunity to load up with gold and Precious Metal investments generally ahead of the major rally that the COTs are presaging.
Full article: http://lewrockwell.com/orig12/maund4.1.1.html
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
| 