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cbwang888 (25.59)

Gold is heading for $1600/oz this year

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April 12, 2011 – Comments (3) | RELATED TICKERS: UUP , GLD , SLV

 

With equity, energy and commodities hit buy bearish calls from Wall Street firms like GS, we will expect USD to reverse its downtrend. Still, USD index is hovering under 75.

 

 

Silver, on the other hand, hold up very well near $40 support even when crude oil shed by 5% from its recent high of $113.

This shows the continuous weakness in USD. Therefore the selling of PMs are done mostly by US traders. The trend of global market moving away from USD is going to push gold and silver to the uncharted level.

 

 

3 Comments – Post Your Own

#1) On April 14, 2011 at 8:34 AM, buffalonate (94.83) wrote:

Gold price's are driven by fear of inflation.  With the Dems and Repubs working on making a serious dent in the deficit and the economy improving which will increase tax revenue I don't see how the fear holds.  When people see that congress is serious about reducing the deficit I think they won't feel the need to hold gold anymore.  I would get out of gold before 2012 starts to avoid the gold crash.   

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#2) On April 14, 2011 at 10:16 AM, cbwang888 (25.59) wrote:

Deflation or inflation, gold is going higher.

The real problem is US debts and USD. US's biggest creditor, China, is (1) dumping US T-bonds (2) print as much to match USD, and turn around buying morePMs and basic materials. They won't buy finished products because it still want to keep its labors biusy so there won't be unrest.

 

 

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#3) On April 21, 2011 at 12:28 PM, rfaramir (29.33) wrote:

"serious dent in the deficit" Really?

When we have a massive fight over whether we cut 1% or 2% from a budget which is 40% borrowed?

Not unless fiscal conservative (of any party) come into power in 2012 do we have any chance of getting the train back on track. Until then, the only hope of making them spend less is to shut down the whole thing by keeping the debt limit in place. And I don't see that happening, so I have no hope at all of a recovery any time soon. It's possible, but very, very unlikely.

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