By Richard RussellDow Theory LettersThursday, November 20,...

By Richard Russell
Dow Theory Letters
Thursday, November 20, 2008

http://ww1.dowtheoryletters.com

Question -- Russell, I see December gold is up 12.80 this morning before the opening. But gold has been up every morning by $10-$15, yet it closes up only $2 or $3 if it's up at all. What's going on?

Answer -- I have to think that one way or another gold is being manipulated by certain sources. What group would least want to see gold heading higher? My immediate answer is the Fed. The Fed is now exploding the money supply. This would ordinarily foment inflation. Surging gold is a red flag that the public understands. The Fed is doing everything it can to hide the fact that it is devaluing the dollar via its current massive production of dollars.

Question -- How will this all play out?

Answer -- I believe gold is in primary bull market. When the kettle is boiling, you can seal off the kettle. But eventually sealing off the kettle will lead to an explosion, as the expanding steam builds up more and more internal pressure. This is what I think is happening to gold. The longer gold is artificially bottled up, the greater the bull forces within gold will struggle to express themselves.