• 742 days Will The ECB Continue To Hike Rates?
  • 743 days Forbes: Aramco Remains Largest Company In The Middle East
  • 744 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,144 days Could Crypto Overtake Traditional Investment?
  • 1,149 days Americans Still Quitting Jobs At Record Pace
  • 1,151 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,154 days Is The Dollar Too Strong?
  • 1,154 days Big Tech Disappoints Investors on Earnings Calls
  • 1,155 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,157 days China Is Quietly Trying To Distance Itself From Russia
  • 1,157 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,161 days Crypto Investors Won Big In 2021
  • 1,161 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,162 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,164 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,165 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,168 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,169 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,169 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,171 days Are NFTs About To Take Over Gaming?
Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  1. Home
  2. Markets
  3. Other

Gold Thoughts

Pleased to announce that votes are in. Ineptness Award for first century of Federal Reserve's existence goes to Bailout Bernanke and his Buckaroos. Last week's interest rate cut cinched it for them. Did the FOMC cut U.S. interest rates because of falling global financial markets or was it pure politics? Reports suggest that FOMC was not even aware of Societe Generale's selling of portfolio problems. Was the fix in, as they say? To answer these questions, think about the day on which they acted. For you see, Tuesday, day of the rate cut, was third Tuesday of January. On third Tuesday in January 2009, exactly a year away, U.S. will inaugurate a new President. With Congress involved in massive vote buying scheme, sending Treasury checks out in election year, Bernanke's Buckaroos had to help out. Think they want to lose their jobs next year? This rate cut was pure politics, the FOMC had received their marching orders previously. No wonder price of Gold has moved to a record high.

Cannot be a person left in world that does not now understand the need for Gold in a portfolio when politics might be determining U.S. monetary policy. Long-term target of US$1,466 will likely continue to rise given these Federal Reserve policies. While government are source of long-term bullishness, we can not ignore market of today. This week's chart is of monthly average price of $Gold. Parabolic nature of the recent rise is suggested by the curve overlaid on the graph. These curves are unnatural, and should not be ignored. Failure of this pattern is usually inevitable and painful. Suggest investers review chart of AAPL to understand the ramifications of such a curve. $Gold is extremely over bought. It has been pushed higher by speculative and leveraged momentum buyers. Investors in Gold should hold their positions, but avoid buying at this time and price juncture.

GOLD THOUGHTS are from Ned W. Schmidt,CFA,CEBS, publisher of The Value View Gold Report, monthly, and Trading Thoughts, weekly. For a subscription go to http://home.att.net/~nwschmidt/Order_Gold_EMonthlyTT.html.

 

Back to homepage

Leave a comment

Leave a comment