Trade, what do you think is the 3 month outlook for the price of gold? It is not reasonable to have a view on gold mining stocks, or any gold miner, w/o a view on the price of gold. I cannot see, with between 2-6million people expected to be laid off or lose their job thru business failure/plant closure in the next 6 months, how the dollar maintains any significant value, and consequently, how gold stays below $1800. Trade, your thoughts, please?
The Technicals are saying one thing and the Fundamental maybe saying something different. The overall market is looking more positive, which will be a problem for gold. The country is barrowing less and less money, so much so that a recession maybe a problem. If you see the tax rates move to a more normal structure, as heading into the 2nd term of the Presidence, gold will be losing it's value.
This year looks as if it will be a good one for the markets and with the right political environment, it may turn out to be a great one. That would be bad for the price of gold.
Well you didn't ask me, but just want to ask - what does people losing their jobs and business failures have to do with the "price" of the dollar (in terms of gold or anything else)? I suppose the fact that these people might be eligible for UI benefits thereby increasing government spending might have a small effect, but others are losing their benefits at the same time so it shouldn't make much difference. Besides, most government programs are just a teeny part of the budget although they like to act like they are significant. The military budget is significant. And its just too bad for the government that they have already spent (stolen) about as much of the Social Security money that they can. In any case, it doesn't seem unreasonable to expect $1800 or more gold as I don't see anything happening or about to happen that will make for a stronger dollar. Unless we actually are having deflation in spike of Bernanke's best efforts.