The German team have worked themselves to a bullish technical view over the last few months. For them the price supports have proven themselves again and again. So long as supports continue to hold, they predict higher prices and an attempt at key resistances shortly.
For my own book, I’m continuing to run my own cash and leveraged positions in the bullion including the bullion miners via equities and equity call options. Its all eyes to the Fed and Dc Ben to see if he is ready to sprinkle some more of his alchemy magic money on the markets. For my bullion positions i hope he doesn’t disappoint. The market is starting to price in action. This is dangerous if he disappoints as we have enjoyed a good run up though with yield compression as it is and dm world FX as undesirable as it is the bullion asset class could move much much further if he doesn’t disappoint.
Without further delay here the report:
At 12.30 (US EST) Ben Bernanke announced yet more money printing. This time he is buying T-bonds again monetizing the US debt some more and expanding his balance sheet care of the electronic printing presses.
With the Japanese elections next week, the monetary issues around the globe at present could not be more bullish for the bullion. Its a matter of time before the prior highs are passed. In my own view, this time will be soon.
Regards Rich
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