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Friday, September 10, 2010

Gold Prices Ready to Rebound?

Gold has taken a little bit of a hit this week, as investors ignored the bad economic news and latched onto the good.

That's highly unlikely to continue for long, as the weakness in the global and U.S. economy isn't going to improve any time soon, and mounting evidence confirms we're in for a continuing recession.

Gold prices will respond accordingly and continue their upward push to who knows where, as central banks' and government policies around the world continue to debase currencies and have done nothing to make a difference economically.

As predicted by us here and a number of others, government spending exasperates the problem, it doesn't help it. And gold and gold investors will be the beneficiaries of this folly for years into the future.

In the short term, gold prices could possibly drop, maybe to $1,245, but the support is so strong, that even if it goes below that it's unlikely it'll stay there long.

The revelation, which many of us already knew, that European banks and the stress tests related to them were a joke, and the depth of the sovereign debt risk is probably even worse than we know.

Picking and choosing what economic date we want to focus on isn't a good way to get a good overall picture of what is really happening, and gold investors aren't usually the type to do that, at least those that follow gold throughout the years.

So gold will continue on its upward run, and the economic data, if it can be trusted, will support the fact the global economy is still struggling, and the recession has never really ended. It was just masked by the trillions countries through at it.

That's all good news for gold investors.

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