What has been missing from most posts is some reasonable middleground. The buzz of "fiat currency", POO compared to Gold and all the extreme valuations are killing sensible debate.
Short term (6 months)Gold is fluctuating as is the rest of the Global economy and price predictions of 300 -4300 because of good and bad days on the DOW are laughable.
Mid term (2 years)we have the real and present possibility of a US recesion and inflationary fears that are not yet realised causing a downtrend.
Long term (10 year) Gold is maintaining an uptrend.
When the US election and XMAS fever is out of the way and the world finacials are looked at beyond the current fluctuations then we will be able to guage the direction of the gold price based on US $$'s.
Comex is playing havoc with the perception of Gold when compared to the "fiat currency". Gold lease rates remain steady and in addition the hoarding of Gold is now a real feature. Dubai Gold and Commodities exchange just undertok the largest ever purchase of phyiscal gold for $25m. This is not a huge $ amount but considering the physical size of the purchase and attitude to swithcing to Gold leasing, this signifies the start of an abandonment and decoupling of US currency to a hard commodity or at the very least hedging their bets so to speak.
On top of this OPEX for Gold producers is now decreasing as POG and energy is decreasing. Labour pools are now being identified. So as the POG may fluctuate in the short term, its extraction is becoming cheaper and physical demand is growing. This looks good for Gold in the medium to long term.
Add to this if you have a sensible reasoned post ;)
