Gold price is very closely correlated to the US debt ceiling....

Gold price is very closely correlated to the US debt ceiling.

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/draghi/Gold%20Debt%20Ceiling%20.jpg

Sometimes it overshoots , sometimes it lags behind , but invariably , it always follows the trend and stays in relative lockstep.

Next debt ceiling debate is when ???? gold price will do what ?

Stock market rally is QE fueled, not legit move based on earnings or outlook imo - look what happened when the FED tested the water by saying they may end QE = 200pt drop in the DOW . Then good ole Ben retracts that sentiment in his next appearance, and poof , the market rallies on.....

QE = higher gold price eventually
Debt ceiling being raised = higher gold prices eventually

Then go and watch the unemployment correlation.......US employment looks to be stalling again (many predict unemplyment numbers to start rising again) Even the Govt tricked numbers tells a grim tale. Actual unemplyment or underemployment is a much more distrubing trend.

The debate and predictions about the directions of the POG are superfulous really. It will continue to follow the same leads it always has. Squabble about short and medium term swings all you like , will matter little in the end.