Although news wires just reported this morning that gold is going down, as investors take profits since gold just hit record highs near and above $890, gold just started to reverse the down trend, at least for this moment, and is rising slightly.
And with price of oil is down today to $93 and change, you would expect gold to sink along with it, not start rising against the oil trend?
Bernakie is going to speak in three hours from now, and Wall Street is expecting a sign as to whether they will give up a nice juicy rate cut they are crying for. And although a rate cut would actually weaken the dollar, and add to inflation...perception is reality, and I think Wall Street is betting that Bernakie WILL INDEED indicate an upcoming rate cut, which would weaken the dollar and cause gold to go up:
Oil is down, yet gold is rising as I type this -- just ahead of Bernakie's speech -- when news wires just reported gold was down on a sell off -- and the trend immediately reversed ???
Either it was the world's shortest sell-off...or Wall Street is increasing their position in gold, betting on a weaker dollar and higher inflation with further rate cuts.
So if you see this in time...you may want to act on the info.
Personally, I would wait and see if Strategy Update called this, just in time...or if it's just a blip.
strategyupdate.comDisclosure: AUY
