My Dear Friends,
Today was full of business meetings in New York. Having spent 27 years on Wall Street, getting me into that city is not easy. When duty calls however, who am I to argue.
I watched the gold market today somewhat displaced from the action. In fact it is via a CME app on an iPhone. A few times I was asked a question, but my mind was on gold. I had to on more than one occasion ask for the question to be repeated.
What I saw impressed me. All during the USA night gold held its highs nicely. The trend certainly confirmed that the drama of closing down the US government shined the light of day on the over the top US debt position.
Today was an operation in the gold market because it was scary for it to have held its high. Just as the Exchange Stabilization Fund thinks a strong dollar policy is that it dies in front of our eyes slowly, control of the gold market is only that it does not go straight up to $3000 – $5000.
Gold is heading to $1500 plus, will get blasted back to these levels and then on to $1521, $1600 and $1650. There is no desire to stop it but only to make the climb challenging.
Stay focused on debt. Do not accept any of the hawkish central bank governor’s MOPE. They simply like to hear their own voices and to see their sketches in the Journal.
There is no practical way to drain the liquidity put in by QE everywhere in Western World finance. The operative word is PRACTICAL. Academically there are many ways with the risk inherent of bombing the weak recovery and running the Western World into a depression of all time.
Alf and Martin may well be right with their predictions of gold going to $3000 to $5000 and maybe beyond.
Sent with MobileRSS for iPhone