Gold Should Continue Secular Bull Trend
Source: Seeking Alpha, J.D. Steinhilber (4/7/10)
"[Gold is] building a base for what we expect will be another leg higher."
Gold has been consolidating between $1,050 and $1,160 since mid-December, and building a base for what we expect will be another leg higher. Gold's fundamentals remain very strong—massive deficit spending from governments around the world; the longer-term incentive of central banks to keep liquidity generous; zero percent short-term interest rates in the U.S.; and increasing global investment demand for gold as a store of value and a protection against monetary inflation. Since 2000, gold has been in a secular bull market while stocks have been in a secular bear market. There is no reason to conclude that these trends are over.