LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
Gold and silver prices bounce back as the Fed stops manipulating them down and why this will continue



-- Posted Thursday, 24 October 2013 | | Disqus

The big sell orders at the end of the day have stopped in the bullion markets and the prices of gold and silver have rebounded in good measure. That’s the win-win scenario that ArabianMoney forecast would follow the raising of the debt ceiling (click here).

The bullion banks are no longer getting late night calls from the Fed to take down gold and as the gold price recovers so the silverbugs get more confident in a tighter market and the price of silver spikes even higher. How long will this continue?

Don’t fight the Fed!

The obvious answer is until the Fed finds itself trapped in a corner again and needs to defend the US dollar. Pulling the rug out from under gold is one way to do this but it is not a trick you can play every day of the week or month of the year.

Will the dollar now hold its own against other global currencies or start to fade away again? Longer term dollar weakness is a very strong reason to hold gold (click here). In the shorter term we would be more worried about China, Japan, Europe, emerging markets and the UK. That does not leave much room for dollar weakness. Against what will the greenback devalue?

What is likely going to happen with bullion is that it will now advance gradually against all these depreciating paper currencies. The central banks are going to keep the printing presses going for as long as it takes to achieve their goal: that’s a global economic recovery, not the hyperinflationary slump that is coming!

In the meantime bullion will be back as the hedge against currency depreciation and monetary inflation. Ask an Indian how this works. Food prices are up 18 per cent in the past year in India and the rupee has collapsed. Only those with their money in gold have actually beaten inflation.

Charts bottom out

Besides from a technical perspective gold is well placed for a price rebound (sorry Goldman Sachs you have your chart the wrong way up!). We are with Clive Maund on the recent bottoming out of gold and silver prices in the charts (click here).

The Fed won’t intervene in the bullion markets to help prop up rival currencies to the US dollar and as these are the ones most in danger now gold and silver are the right place to have your money.

The ArabianMoney investment newsletter (subscribe here) will have some interesting advice for subscribers only in our next edition.

 


-- Posted Thursday, 24 October 2013 | Digg This Article | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.