Gold Price Outlook
crystalline gold nugget
After churning around just below the old high, and sucking in as many profit takers and short sellers as possible, gold blasted through to a new high for the year . Never mind that the triggering event is complete balderdash, a story in Britain’s Independent newspaper asserting that the Middle East is holding secret global talks to price crude in the yellow metal or other currencies (click here ). It didn’t hurt that Australia cut its interest rates by 0.25%, the first G-20 country to do so.
There probably isn’t enough gold in the world to finance more than a few weeks of global oil production. Total gold holdings would only fill two Olympic sized swimming pools.
But never let the truth get in the way of a good trade. The confirming moves couldn’t be more ubiquitous, with the Canadian, New Zealand, and Australian dollars all up big, commodities strong, and silver also going ballistic.
With foreigners holding a large part of our paper, the only way to get out of this mess is to devalue the dollar. So, what is the next possible gold price move? It very well could turn out that the next stop for the spot gold price will be $1,200, then $1,500, then the old inflation adjusted high of $2,400. Sure, these gold price forecasts are not certain, but just a good bet.
Yukon gold nuggets
Japan and China with their hoards of U.S. dollars have and are continuing to manipulate their currencies to the dollar (they want to keep selling us their production) and supporting the value of the dollar holds gold prices lower than international events really dictate.
Prospecting Equipment