gold and sensational new discovery by inspectors i

GOLD and sensational new discovery by inspectors in Iraq - London Bullion Report


"Weapons inspectors are said to have made a new discovery that makes war inevitable. The discovery of a huge quantity of oil has been found buried under the desert and is sure to prompt military intervention by our gallant troops. Spokesman General Kickassburger was jubilant saying "Saddam thought he could hide it. But now we have discovered vast stockpiles of WMD (Wells of Major Dimensions). Now we can send in the tankers." "- so it was reported in the popular UK media.

Gold is benefiting from tension surrounding the planned attack which commentators have ascribed to the increasing political and economic isolation of the US amidst gathering global anxiety that their ambitions are economically rather politically driven. When the Head Prefect is caught stealing, where do we go from there ?

The sustained breach of the $355 level at last consigns the bear run extending back to 1987 to the history books from a technical perspective ; meanwhile the two year bull run remains very much in place.

It would be tempting to ascribe a limit to where gold prices could reach but it is simply not possible. We are out of the realms of technical levels and on the cusp of the "madness of crowds" where strong self-fuelling buying behaviour stands to propel gold well into the $400 bracket. The next couple of weeks should prove to be exciting for gold.

The jitters extended to platinum which touched its highest since Noah was a boy (September 1986) at $648 and there are concerns that this may prove damaging to the developing jewellery markets in Asia. Fears of supply interruptions at Norilsk Nickel, Implats and Lonmin have conspired to prompt some good industrial buying. A correction lower should be on the cards.


Ross Norman
TheBullionDesk.com