On a previous post dated October 12 (see related chart above), I was writing the following:
"Gold last week went strongly up, way above the psychological level of $1000. My gut feeling? gold will boost to $1300 in the next few months. US dollar is losing its credibility as worldwide reserve currency. Central banks are divesting their dollars to have more euros and yen. China wants to get rid of its dollars. This will probably further contribute to the rise of the price of gold."
Let's look at today weekly chart below: gold is now priced at $1115, a 10% move up in less than a month. The momentum (see the MACD indicator) is supporting the current uptrend.
From a fundamental point of view: There is huge suspicion about paper money around the world and this suspicion is increasing every day. Furthermore, gold mines have depleting reserves and central banks are increasing their gold reserves: this is supporting the current increase in the price of gold. Additionally if you adjust gold price for inflation, the price should be around $2000 an ounce today.
--
I am currently in Bogota, visiting the "Museo del Oro", the most important collection of gold art works in the world with 35,000 pieces exhibited.
No comments:
Post a Comment