resistance & support levels, page-8

Is not so simple as saying the POG would just drop.

Gold's main driver is monetary and governmental instability not really just inflation.

If Germany pulls out and the Euro collaspes there could be a huge rush into gold as people seek a safe store of wealth that has no or limited counter party risk.

Recall that on the day Lehman's went bankrupt, a very deflationary event, gold shot up 70 dollars, by far the biggest one day percentage gain in history (I think) because of the monetary and financial stability concerns that were rasied.

Germany pulling out of the EURO would dwarf the Lehman bankrpucty I would think. I'd say it would be hugely bullish for gold.

No QE may put a damper on the POG but again it's hard to say. If that started leading to a big contraction in money supply, rising bond yields for the feds, it may pull gold in both ways.

Just my thoughts.

Twinsen