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

 
Technical charts close to breakout for gold


 -- Published: Thursday, 18 June 2015 | Print  | Disqus 

By Peter Cooper

After more than two years of being trapped in a narrow trading range and four years into a bear market is the gold price about to breakout to the upside as the Fed can’t raise rates once Greece tips the global financial system into chaos?

Well the gold price will be the last thing anybody is concerned about when that happens. There will be much bigger fish to fry. But gold and silver prices look set to rise and not fall as in the 2008-9 crisis.

Different this time

That’s because it is going to be a different kind of crisis this time around. Where will Chinese stock market speculators put their money when the balloon goes up? US treasuries? Even the Chinese central bank won’t buy them any longer. Shanghai was down 3.7 per cent today and gold up two per cent.

Where will frightened German investors run to? They expanded their gold purchases in Q1 as the Greek crisis grew. Likely as not gold will be their safe haven of choice again.

Of course we have no idea exactly how the Greek default and exit from the euro will pan out. Nobody does and that is the classic uncertainty, 348 billion euros of it. Markets just will not like it at all.

European markets have been inflated by money printing this year to levels that are wholly out of synch with economic circumstances. Now they will make a correction and a vicious one.

But who holds the Greek debt and will take the cost of default? This is not going to be entirely painless.

At the same time there is monumental complacency on Wall Street about a US recovery that is running out of steam thanks to a high dollar and rising interest rates. A correction in stocks is also well overdue.

Wall Street Crash

But if global bond markets are pushing interest rates up then bonds won’t be much of a safe haven as they fall in value as rates go up.

Then again what are the central banks going to do if financial markets go through another rough patch? They can only do one thing and that is print money and buy gold.

What’s the asset class that benefits most from money printing and central bank buying? Precious metals. That’s why prices rose after yesterday’s less strident tone from the Fed, and they are going to rise a lot higher.

Gold at $1,200 this afternoon is only $8 off the point at which technical analysts turn bullish…

http://www.arabianmoney.net/


| Digg This Article
 -- Published: Thursday, 18 June 2015 | E-Mail  | Print  | 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.