The actual gold price, however, is beginning to take on some serious upside potential. I expect gold prices to retreat now to preserve the 2 up, 1 down, 1.5 up, .75 down then another 2 up, etc. pattern, so I expect gold prices to retreat some tomorrow. But not too far. Tomorrow's gold fixing should tell. If tomorrow's gold price reaches 1070 or near then we have a far stronger rally than even I expect.
b
Looking at gold prices, one must take into consideration the underlying fundamentals. The deliberate policy of the Obama regime to deflate the US economy by deflating US assets means that there are more and more dollars that buy less and less. This alone would eventually cause inflation, even though the rise in prices is counterbalanced because unemployed people are desperate to raise cash. In fact, what the regime is doing is transferring wealth to other countries by reducing the value of our money. There is more going on than the Obama regime destroying American assets; it is also printing more and more dollars to continue its Munchausen by proxy Socialist policies. So, gold is rising in value because everyone is converting dollars into gold.
If it were only gold, one might deny the fact that the laws of economics are working. But, the loss of value in the dollar is reflected not only in increased value for gold, but for other commodities as well. Here is a report from today's market action:
Equinox Minerals jumped 5.15 percent ...
Rio Tinto jumped 5.23 percent ...
European Goldfields jumped 7.45 percent ...
Atlas Iron jumped 8.2 percent ...
Fortescue Metals jumped 9.12 percent ...
Hallador Petroleum jumped 11.3 percent ...
And many other resource stocks surged even higher!
If the Obama regime will try to fight the increase in gold value, it will only succeed in squandering our gold stock as well. But then the dissipation of American wealth IS THE POLICY of the Obama regime.
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