The Tragically Flawed Fed Policies And The Eventual Reset Of The Gold Price

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Includes: AAAU, BAR, DGL, DGLD, DGP, DGZ, DZZ, GEUR, GHE, GHS, GLD, GLDI, GLDM, GLDW, GLL, GTU, GYEN, IAU, IAUF, OUNZ, PHYS, QGLDX, SGOL, UBG, UGL, UGLD
by: Dave Kranzler

With gold showing good resiliency, as it has tested the $1200 level successfully after enduring aggressive paper gold attacks during Comex floor trading hours, it’s only a matter of time before it breaks out above $1220 and heads toward $1300. Gold has been under attack in the futures market this week, as the world’s largest physical gold importer, China, has been closed all week for holiday observance. In addition, with financial market conditions stabilizing in India, the world second- largest physical gold importer’s peak gold buying season resumed this week. When gold spikes over $1220, it will unleash an avalanche of short-covering by the hedge funds.

What will cause gold to spike up? There are any number of potential “black swans” that could appear out of nowhere, but at the root of it are the tragically flawed monetary policies of the Federal Reserve, along with the rest of the Central Banks globally. Of course, the eastern hemisphere banks are buying gold hand over fist...

Chris Marcus invited me onto this StockPulse podcast to discuss the precious metals market and the factors that will trigger an eventual price reset: