The Perfect Storm
by Stewart Thomson
have endured a long and frustrating year. Gold continues to move
sideways. I believe the breakout will be to the upside, for a number
of not-so-thrilling reasons.
growing tensions between Iran and Israel seem to be close to boiling
point. Prime Minister Benjamin Netanyahu and Defense Minister
Ehud Barak have almost finally decided on an Israeli
strike at Irans nuclear facilities this fall, and a final
decision will be taken soon, Israels main TV news
broadcast reported on Friday evening. ~ The Times Of Israel
newspaper, August 11, 2012.
A number of
high-ranking politicians in Israel argue that Israels military
is not adequately prepared to manage a military reprisal
attack from Iran. That doesnt seem to bother the pro-war crew.
progress a lot differently than originally envisioned by the war
mongers. Unfortunately, I believe the continuing triangularization
taking place on the gold chart reflects the growing possibility
of severe and prolonged military conflict, between Iran and Israel.
here now. Gold is coming off a six-day win streak, and coiling
within a very symmetrical triangle pattern. A downside break is
possible, but unlikely. The upside target is approximately $1710.
easing issue has been relegated to the back burner by most analysts,
but there has been a subtle change in the statements of Chairman
Bernanke, and the statements of a number of key Fed governors.
begun to speak about the possibility of doing more
if jobs numbers dont improve faster and more significantly.
here now. You are looking at the Federal Reserve System, which
is made up of twelve regional banks.
If you click
on the cities of Boston and San Francisco (first and last on the
list), you will see the president of each bank.
Both Eric Rosengren
(Boston) and John Williams (San Francisco) are now publicly advocating
not just more QE, but open-ended QE.
more governor bowling pins will join Rosengren and Williams,
if employment numbers dont pick up dramatically before the
QE was supposed
to jump start the economy and prevent a double-dip recession. I
dont see any double dip recession coming this year or next
year, but growth is stagnant, and debt continues to grow. Open-ended
QE means monthly QE with no specific endpoint.
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© 2012 321 Gold