Gold rally... real or another head fake?

[Cu Penny Hoarder]

[68Camaro]

We're going to see a lot of intraday movement both up and down going forward for quite awhile. I tend to believe we're on an upward path for an extended time and if so swings of $50 or more will not be cause for concern during that time. Today it is "due" to the emotion over oil prices dropping again. As more and more bad news comes in that can't be papered over we'll see it go up and tend to stay up. But we all know that the tptb will always push the fictional story that all is well except when something happens that they can't ignore - in which case that tactic will be to redirect focus or blame elsewhere.

[IdahoCopper]

The GSR is at 80. When was it higher?

[beauanderos]

gold really wants to break loose, but they keep capping it. Three steps forward, two steps back. In the end, it's still progress
of one step forward... but without the sizzling excitement it would have generated had the launches not been constantly thwarted.

[MaxGravy]

The GSR is at 80. When was it higher?

[Cu Penny Hoarder]

Hit $1254 this morning, then as I expected, TPTB killed it.

$1222 as I write this.

[InfleXion]

I don't really expect a full on rally in metal until fiat currency is ready to exit stage left.

The USD will probably continue to be the beneficary of increased demand as the rest of the fiat currencies, which don't have the benefit of being the global reserve currency (which allows the US to export inflation/deflation via the petrodollar, for now), cause people to rush into USD as the safe haven while their own currencies continue to struggle, particularly the Euro (which could never work because different nations require different monetary policies to succeed [Greece vs. Germany for example] yet they are all in the same boat) as well as the Japanese Yen which starting racing to the bottom decades before we did.

Not to mention China is buying up foreign businesses like crazy which leads me to suspect that they are soon anticipating the day where the Yuan will not have the same buying power.

So I suspect any gold rally will probably be offset to some degree by a strengthening dollar, which means we should continue to be able to buy it on the cheap (which it still is) until such time as the USD is no longer seen as an attractive currency, and that will be the last domino IMO.

Remember, in foreign currencies both gold and silver have performed quite well over the past year. We may get the discount for a while longer still.

[tdtwedt]

So I suspect any gold rally will probably be offset to some degree by a strengthening dollar, which means we should continue to be able to buy it on the cheap (which it still is) until such time as the USD is no longer seen as an attractive currency, and that will be the last domino IMO.

Remember, in foreign currencies both gold and silver have performed quite well over the past year. We may get the discount for a while longer still.

I agree with your assessment. As long as the dollar is the sole reserve currency we can get PM at a discount. But there will be a process where the dollar becomes part of a basket of reserve currencies and eventually be dropped or decreased from the basket as the debt of US increases. How long the process will take is anyone's guess.

[JadeDragon]

Gold is way up in Canadian dollars, makes me want to hold more of it.