A Golden Basement Floor?Has gold now set a floor in at $1,000? I’ve been advocating $1,500-$2,500 for eight years now; however, there are certain psychological boundaries that seem to matter: $1,000 gold is one of them. That magical figure was hit in early 2008 but fell back. Several runs have been made since then; however, it seems that the most recent breakthrough just might hold and be a new gold floor.
Gold climbed 1.5 percent to trade within striking distance of its all-time high on Tuesday, as the dollar fell across the board ahead of a Federal Reserve meeting on interest rate. The US$ is history. It’s just a matter of how far and how fast the US$ tanks. The US$ could break below $0.76 today.
Meanwhile the Euro keeps heading into nose-bleed territory. The euro rose above $1.48 for the first time in a year as dealers took advantage of deteriorating sentiment toward the dollar to target options barriers at that level.
The illegal Fed meets today and tomorrow. The market is watching for the outcome of a two-day Federal Reserve monetary policy meeting, which is due to start on Tuesday and a G20 meeting, which kicks off on Thursday, which could have an impact on the dollar. I really can’t see anything positive happening for the US$. We’re headed to massive INFLATIONARY spirals. And now Obama would consider a bail out of the newspaper industry? And who is going to bail out the Fed?
ACORN maybe? 😦
God has been holding above $1,000 though barely and the last 30 days ahs seen gold rise more than $75 an ounce: $165 for the past year! And then there are the unintended consequences of crazy political decisions. Can you imagine what gold would do if Israel attacks Iran’s nuclear plants? Oh yes, and Zelaya is back in town (Honduas that is) and who knows what Hugo Chavez might touch off from South of the border.
Gold loves uncertainty and it has a lot to love these days.
About the Author
As a spiritual-futurist, I have a BA degree majoring in history. One cannot know the future without knowing the past which holds clues to what is on the horizon. The world is in such a rapid expansion of knowledge that we are close to entering a tipping point that will forever change earth as we know it.
Honduras — Democracy’s Final Triumph