Gold received a nice $34.10 boost today for 1.98% after new of the central banks and the federal reserve mentioned that they will boost liquidity to the banks if needed. Hmm, an increase in digital dollars again?
The financial markets liked it with huge gains to the upside. Money that was sitting on the sidelines was put to use today with European debt uncertainty in the background for now. But it is a temporary 'fix' as the debt issue will inevitably rise again, it's just a matter of time.
Chart of the World Gold Index from mid June 2011 with a fibonacci retracement from the low of the summer to the high in late August / September. Today's rally sent Gold up to the 61.8 retracement level and closing just above the 20 day moving average.
Should the US Dollar continue to decline in the short term, Gold may be able to break above the upper trend line and make an attempt at a new high or a triple top.
The Gold and Silver miners had a good day as well, following the appreciation with the metals. Money may start migrating into this sector as more solid earnings are released. Watch the HUI index for a potential breakout in December.
Silver was up .85 today for 2.64%. Return year to date is 6.03%. Gold's return year to date is 22.64%.
The financial markets liked it with huge gains to the upside. Money that was sitting on the sidelines was put to use today with European debt uncertainty in the background for now. But it is a temporary 'fix' as the debt issue will inevitably rise again, it's just a matter of time.
Should the US Dollar continue to decline in the short term, Gold may be able to break above the upper trend line and make an attempt at a new high or a triple top.
The Gold and Silver miners had a good day as well, following the appreciation with the metals. Money may start migrating into this sector as more solid earnings are released. Watch the HUI index for a potential breakout in December.
Here is a message from Peter Shiff regarding an entry point into Gold:
Silver was up .85 today for 2.64%. Return year to date is 6.03%. Gold's return year to date is 22.64%.
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