Gold's 2% Rally Beats The Bears Back... For Now
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
What a day for the bears on Wednesday. CPI came out at 8:30 EST, and the equities fell 500 points, gold fell $15 and the dollar spiked. By the end of the day, gold reversed by $50, the Dow by 600 and the dollar got pounded, another beating for the bears.
The action looked more like short covering as the bears got squeezed again. The excitement is back, and buyers are everywhere, because this time is different. This action looks like a great selling opportunity in equities and gold but a buy in the dollar. The price action suggests selling into these rallies; the tops are in and markets should be sold.
The Fed Ponzi scheme is starting to fail. Their last hope is to keep pressure on the dollar. History tells us the Fed will fail. They are clueless and lost while trying to borrow their way out of debt. As with all Ponzi schemes and manipulation attempts, this one will fail, because this time is not different.