As you all know I have been very bullish on gold. So whats the next immediate move on the price.
The Fed and ECB have provided 200B bailout funds. How will these funds be used ... besides liquidity to hedge funds (which is what they say!).
Will they also be used to keep the price of gold contained - giving the perception that the USD is stabilising in line with their economy.
OR
Will they catch the market by surprise and move the gold price up hard - giving the perception that the USD is in tatters (which is no secret) - and making gold an expensive entry point for those countries who want to sell US T-Bills (cheap) and buy gold (expensive).
Personally I think the US has to accept a period of time with a very low USD/and low interest rates if they want to repair their own economy
Goldmans Sachs overall short positions has now decreased!
I'm positioned for option 2. Looking for a run to $700 this week and a strong run on monday.
