Gold prices had been showing reduced volatility. Most of the time, gold prices have been increasing. However, gold had become overbought, which was shown by the gold price having been above the upper boundary in the graph for several days. I thought that a correction was coming (see last post). That correction occured as gold price fell today from 1,363 to 1,333. That was enough to bring the gold price back within the upper boundary of the expected range.What happens now? Under normal circumstances, we would expect gold to come back to the 50 mark on the graph or even below. These downward jags represent the hesitation by buyers to re-enter the market as they wait for prices to come down some. Hower, the report from the gold market is that traders wait less and less, so gold prices might resume their upward march tomorrow. Regardless, whether gold starts its move tomorrow or Monday or Tuesday, the next high plateau is calculated to occur between 1,395 and 1,405.
Technically, there is no resistance to gold prices moving higher. A lot will depend on what the FED announces. The FED promised more QE if the economy softened. Well, it did, but the figures on unemployment are being fudged, so the FED may wait till after the election. Chances are though that the FED will print and gold keep rising.
Government has no substantiation undergirding its 'interest payments'. Consequently, I suspect that after the elections, the stock markets will be crashed, so that government can offer wiped out savers a 'deal' to restore their 'equity' by swapping pre-crash nominal 'valuation' in Treasury Bonds for their wrecked assets. This will prevent the necessity of hyperinflating the currency volume as the 'retirement' assets (had for free), can then act as a foundation for the 'value of interest'.
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