My Dear Friends,
Gold has had a historic amount of negative print and airtime this week. The Yamana and Armstrong comments seem timed perfectly to kick the legs out from under gold. The price of the US Dollar seems to have forgotten it was at .7900 only 11 weeks ago.
The dollar has risen because the Euro collapsed 1000 points from 1.3600 to below 1.2600. This collapse of the Euro is due to the serious sanction’s impact on Europe which have not significantly damaged any US financial interests. On the contrary, anti Russian sanctions have tipped Europe into recession. Draghi has been trying to talk the Euro lower for trade reasons, but his power is only words as QE there is more than likely against their constitution. This will decided soon.
To declare a permanent death sentence on gold because of the dollar’s mirror image up move to the sanction-injured euro is premature in rally week #12.
Gold is trading down into old lows which by definition are major support levels while both long and short term cyclical indicators have gone positive. Therefore probability says the decline is nearing an end both in time and price.
I am fully committed financially to gold as I was above $1900. I anticipate success.
This will drive the gold hating internet trolls wild, but all their efforts fit nicely into the spam blocker. I do not open emails from new names during these trying times as I know the organized and strategized hate that pours out of them.
The takedown on gold is a highly organized spoofing play. It will fail to hold gold down permanently, and gold will again trade to new highs.