My favorite analyst has warned about a coming $100 dollar correction in gold prices and the correction arrived like a thief in the night. Simultaneously with the drop in gold, the Dollar went up and oil dropped a couple of dollars.
HOWEVER! Gold miners are dropping slower and silver miners are resiting downward pressure. Oil prices recovered some and the Dollar is howering a little over 77. The correction might be of uncertain size at present.
Why is gold dropping? The culprit is probably the FED, trying to fool the voters that things are all right. Big decisions are coming Nov 2. The FED will meet that day and of course we have the election. Do people believe that a Republican victory will moderate the Obama regime? If they do, they are mistaken. And the FED will do whatever it wants to do. QEII is coming soon.
Thursday, October 21, 2010
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