Indeendent

Will Gold Break Out?

Two major factors impacting the value of a currency are the debt and the interest rates. US debt keeps increasing. US interest rates will have to stay low, unless the Fed wants our economy to collapse. That will keep the dollar weak. If the ECB will keep the Euro strong, gold might give up, and Euro might become a better hedge against the falling dollar. However, I suspect that there is a powerful effort by the governments to keep the gold from becoming a storage of value. Hard opponents to play against. And they have not tried hard yet. If the oil price is indeed driven at least significantly by speculators, a significant fall in oil prices will lift the dollar. What are your thoughts?