With so many central banks undergoing inflationary policies and governments facing fiscal cliffs as evident in the link above
IMO the ADP report Friday in the US just reiterates that the global economy is slipping fast and the US in particular is close to recession.
July meeting in a few weeks I think will either see QE3 announced or a definite swing of words in their statement to show QE is coming. I predicted a few months ago that July/Aug we'd see QE3
The ONLY reason Gold has fallen recently is the rise of the USD but its important I think to realise its not USD strength, rather, the USD is the least weakest ccy at the present. IMO, thats a wrong judgement by the market and themarket is not always right
thats why I think Gold is significantly undervalued and once QE3 is announced, those USD holders and mostly, the bond holders are going to switch to gold
