Keep the following in mind:
- The price of gold is all in the dollar and has been since we met. It will continue to be.
- China is quite upset with the disrespect received and what is perceived by them to be the Western element in the recent disturbances in remote provinces and an NGO believed to be financed by the West.
- The weak position of the dollar could easily be an Achilles heel.
We are nearing a breakdown in the U.S. dollar with a target towards and under .7200. That means we are nearing the visible result of a currency event in terms of prices in general commodities.
The CIT failure means without any doubt upwards pressure on short term interest rates. The Fed will cave into Administration pressure, increasing Quantitative Easing to a level best described as infinite.
Gold will take out $1,000 on this try with a very temporary retreat before it moves fully through. Gold will move to and through $1,224 with a temporary battle. Gold will move toward $1,650 but meet serious temporary opposition in the $1,400 area.
All of this will occur starting quite soon. Hold on tight to all that is precious metals.