WILL GOLD SOAR TO $1500.00 AN OUNCE? (Or, alternatively stated, say goodbye to July's Blog)
Just when analysts were writing gold off and predicting the price to be the same as a man's good suit, the precious metals market has found new life. The price of gold has increased over $230.00 in little over a month. Why the dramatic increase? There are many possible reasons. Physical gold was oversold. Players had to cover shorts. The dollar weakened. Global political tensions, particularly in the Middle East, have dangerously escalated. Safe haven buying of gold has dramatically increased. And, as always, conspiracy theories abound. What does this significant increase in gold portend? I confess I do not know with any degree of certainty. And, I further believe that the necessary information to predict the short-term future of gold is only available to a special few, who have the power to influence prices. In the meantime, technicals portend higher prices in the near future. Let's enjoy the ride while hoping that the world calms down.