The typical American household is thinking about more practical presents in these recessionary times: PG&E gift certificates...bread machines and pasta makers...survivalist seed packets...battery chargers.
The bottom line is gold’s upleg is still young. Gold’s strong recent gains were mostly driven by stage-one gold-futures short-covering buying, which isn’t even finished yet.
Jobless claims are not rising fast enough and the government wants to see jobs hurt. The second problem is that the GDP numbers were revised higher and that is not what the markets want to see.
What is really going on in China? Markets trying to figure this out. Lots of economic data coming then things will really quiet down. Gold is in a bit of a sideways action...
Trend and momentum is very bullish for gold, silver, and copper. One needs to look for signs trend reversal after the release of US third quarter GDP number and Core PCE price of Q3.
All the gold charts are incredibly positive. The only question is whether a right shoulder forms now as part of a beautiful inverse H&S pattern, or gold simply begins a vertical move towards $2000.
