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Gold Outlook -Gold is still driving the market - Minor Gold Stocks
| Gold Outlook -Gold is still driving the market Those of you who have been watching these videos in the past will not be surprised to hear me say that weve got more of the same coming. All the way through weve talked about the gold price being quite strong and really leading the resource sector. And thats reflecting all the inbalances in the world in respect of debt levels in a lot of the OECD countries. Now were seeing that strong gold price, were seeing gold over 1150 over night, and I think were going to see move up to the 12, 13, 14 hundred dollars an ounce, reasonable soon, certainly thats what it looks like. The demand for gold is still very robust and were seeing the major gold stocks starting to really perform and look as if theyre going to make a major upside breakout. Now the gold price is moving because of a whole range of reasons. Mine production has been declining for the last 10 years, and that has a minor impact, weve seen India buy that 200tonnes of gold from the IMF and Im sure that other central banks around the world of smaller nations are looking to buy more gold as well. The American dollar is weakening, it has been quite weak over the past few months, and that certainly is helping things. The decision by the US fed to keep interest rates low for another year or so basically means that the US dollar will be much weaker against other currencies, and the so called carry-trade where people borrow low interest rates costs (US$) and buy assets will continue. The weight of money in the United States <b>...</b> |
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