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  • Short Term Warning for Gold Bugs [View article]
    Crowded trade - yes! A drop in oil prices will spur a bear market rally, pushing down the price of gold. By the fall, the rally will reverse and gold will be back at +$900 an ounce. The consu,mer is tapped out and a drop of $0.50 a gallon will not spell relief. The Fed will not raise interest rates for fear of destabilizing the shadow banking's derivatives market. Asset deflation in housing coupled with price inflation in necessary goods will return the market to its general uneasiness and put a floor of $850 under gold.
    Jun 02 09:47 am |Rating: 0 0
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