Will gold break 1,350/oz this coming week?

Ever since the election of Donald Trump as President the polarization of America is becoming more apparent. Mr Trump did not cause the polarization, but his policies and hitting back at enemies sure bring it out. I have a friend whose favorite saying is “if he just kept his mouth shut.” Well, George W Bush did not talk back and McCain and Romney laid low and what did we get for it? Eight years of Obama and the Inner State nearly getting away with converting us to a third world Kleptocracy.

Make no mistake though, the world is in serious financial trouble. What trouble? The printing of currency is going to bite. For 100 years since the founding of the FED the US Dollar has been losing value. You can see this best by looking at how much a US Dollar is worth in terms of gold. In Roosevelt’s time gold went from $20.68 to $34.72/oz. In 1970 an ounce of gold was worth $35.94 but in five years it went to $161. By $1980 gold hit $612/ounce.

Gold began to fluctuate in US Dollars as the FED, the BIS and the Bouillon Banks tried to keep prices down. Then in 2011 gold hit $1900/oz, before falling back to $1,200.  Note that with each rise and drop, the drop never returns gold to the previous low.

Today the FED, the BIS and the Bouillon banks are trying to defend a price that has been dubbed the “Maginot line for gold.” This number is $1,350. The Maginot line was the French line of defense against Germany at the start of WWII. It stretched to Belgium and was considered impenetrable. So, the Germans went through Belgium and France surrendered. The metaphor for the gold price (i.e. calling $1,350 the Maginot line) is following through, because the price of gold has already reached new highs in other currencies. It is just a matter of time before the $1,350 line is breeched and then not only gold will go up in US Dollars, but the value of the US Dollar will drop in terms of other currencies. While, the US economy is chugging along smoothly, the Democrats are out to sabotage it any way they can before the 2020 election. For example, the Democrats refuse to vote for the Infrastructure Bill or the efforts to build the wall at the border, both of which would stimulate the economy.

Here are the market efforts to penetrate the $1,350 price. Experts expect that when gold closes above $1,3550 there will be a rapid rise in prices. Note that gold made two attempts to break above $1,350. The next attempt might do it.