Two hours ago we wrote that the price action in gold was like a South Sea pearl diver, the deeper his courage and stamina allowed him to dive, the greater his chances of coming to the surface with a fortune.
That has now happened with gold. In two hours the price has jumped from its dive down to circa $880 an ounce to over $940 an ounce.
We just wish that we could convince you that we anticipated such a quick recovery, but of course we didn’t!
Being wise after the event is not our forte but we must reiterate that we can see no viable alternative to the yellow metal as our leaders take us ever deeper into the mire of economic destruction.
- Will the bounce back stay firm at the NY close?
- Will Asia keep up the impetus?
- Will Europe tomorrow follow New York’s lead and keep the renewed upward momentum going?
- Could this be the start of the break out to $1000 an ounce or more?
We wish we knew the answers but right now we are faced with intriguing times.
Hopefully tomorrow will give us some indicators to the way ahead in the shorter term.
In the meantime the underlying confidence that we believe has been evident in the last few weeks seems stronger than ever as buyers have taken advantage of today’s earlier significant dip followed by the surge due to the Fed’s plan to buy $300 billion US Treasuries and the consequent bearish prognosis for the dollar.
We have been telling you of exciting times ahead for gold and there is a whole lot more to come. Watch this space!!
Category: Precious Metal Investment News