Monday, September 27, 2010

Gold Sept 27, 2010

World Gold Index, Sept 27, 2010. 7:50 PST
The chart is fairly self explanitory, a bull trend since late August 2010 with higher highs and higher lows. No significant pullbacks yet. There is some resistenace at the $1300 level, but I think that will be short lived. As long as the stochastics stay embedded (both K and D lines over the 80 level), Gold should be trading over the $1300 level within a few days/week. If the K line stochastic breaks below 80, we may see a short term pull back before closing above the $1300 level.
The goverment / Obama administration continues to print up money to get this economy in favorable shape going forward. The only way governments can assist is to print up more money to help failing businesses and bail out major corporations (like the auto industry). Another $42 billion is going to be 'borrowed' from small businesses to help put 500k people back to work and assist with the unemployment rate across the nation. It is something that is needed as people want to work. I'm not sure if these loans will get paid back, especially if the business that receives the loan continues to struggle.

$42 billion small business bill signing by President Obama on Monday With government money printing presses going, Gold should continue to rise in U.S. Dollars. As Gold goes up, you can also see it as your dollar losing value.

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