Thursday, February 25, 2010

$1200 Gold

A report that China's central bank will buy another $7 billion of gold bullion from the IMF, which has been periodically raising funds by the sale of its precious metals reserves, has been touted as helping to put a floor under the price of gold at around $1,100 an ounce Wednesday.>>READ FULL STORY If a central bank buyer for the IMF gold is announced, I continue to believe, as I posted on Wednesday, that gold is set to run back to $1200. Todays actions will mark the beginning of the end of this minor correction.

From CNBC Fast Money:I just can’t feel bullish, says Dennis Gartman. I think Europe’s problems are long-term and in fact, I think it’s possible the EU could ultimately dissolve. But whatever the outcome, the troubles in Europe are likely to hang over markets for a long time and that’s bearish.
Considering the economic and political circumstances in Europe I’d get long gold.

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