Tuesday, August 26, 2008
6:12AM PDST
No real volume to these gold rallies.
If it doesn't move higher quickly, it will sell off back down to near the lows.
A big buy in could drive it higher.
Dollar is coming back down
Euro is moving up
Oil is moving back up
Bonds are forming a slight down flag that should resolve up as people buy bonds to escape the dollar and inflation (totally incorrectly!)
That should drive long term interest rated DOWN.. again counter to logic, because
interest rates will soon skyrocket with inflation as interest is the COST OF MONEY!
Stocks in the 11390s will probably fall on the open, a total casino game.
I expect gold to fall soon, but will not be surprised at all to see it spike higher, especially after
it pulls back suddenly.
Right here it is in a consolidation pattern going sideways from which it should resolve up.