Wednesday, August 19, 2009

Gold Trend Higher

A look at the shorter term oscillators show that Gold or in this chart the ETF GLD is nearing a BUY signal.
The longer term view is more positive for the price of $Gold as the U.S. economic
policy situation is so negative. The Obama administration will take action in an attempt to bolster its collapsing political power. Also, Fed Chairman Bernanke is in re-election mode as his appointment as Chairman is up for renewal in January. All in all, these factors mean more't spending and the Federal Reserve monetizing the U.S. deficit created by that spending. The Federal Reserve has no choice but to move toward direct financing of the Obama Deficit. Bottom line Gold will rise as money is "printed"!
*click chart to expand image

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