Gold was attacked early this morning at around 9:00am and hit a low of roughly $1,142.70, then made an impressive rebound of almost $17 to $1,159.50 by about 9:50am. After the excitement wore off the bears were in control again and we see a close at about $1,149.00 today. This is below the $1,150.00 mark that many technical traders claim is a huge support level. Will it hold is the big question? In light of the FOMC announcement tomorrow and the clear evidence that the bears seem to be in control of this market for now, I suspect the announcement tomorrow will be gold negative and we may test the $1,100 level soon? It's nearly impossible to use any short term market indicators these days to predict prices.
However the fundamentals for gold to regain it's "safe haven" status are stronger than ever, with the UK and Australia joining the new Asian development bank organization and the creation of a new SWIFT system by Russia and China are clear indicators that the USD's status as the dominate currency in the world is falling. I imagine we will soon have a few currencies to choose from as a international trade currency. The big question is: will gold be the backing to any new currency developed for international trade?
Stay tuned...
Bosko Kacarevic
However the fundamentals for gold to regain it's "safe haven" status are stronger than ever, with the UK and Australia joining the new Asian development bank organization and the creation of a new SWIFT system by Russia and China are clear indicators that the USD's status as the dominate currency in the world is falling. I imagine we will soon have a few currencies to choose from as a international trade currency. The big question is: will gold be the backing to any new currency developed for international trade?
Stay tuned...
Bosko Kacarevic
