Gold Breakout, Real or Fake?
News_Letter / Financial Markets 2009 Sep 06, 2009 - 02:21 PM GMTBy: NewsLetter
Issue #70 Vol. 3
Dear Reader
The seasonally worst month of the year for stocks got off to a mildly weak start with the Dow closing 1% lower at 9441. The U.S. Dollar continued to trade sideways above USD 78 attempting to form a bottom, though the longer the USD continues in this manner the harder it will become to break out higher above 80.
The major commodities news of the week was Gold finally resolving out of its converging triangle to breakout HIGHER. Much to the relief of patient gold bugs. However, whilst on face value the breakout is bullish for gold, it has yet to break above the previous high of $1030. My own take on gold is inline with the strong dollar analysis which is bearish for gold, clearly the markets are now signaling a potentially different scenario at work which does require an in depth analysis of Gold before I can comment further.
Meanwhile the G20 leaders concluded their weekend meeting in London by announcing in all but words that the real power still lies with the bankster's as no real action was taken on regulating bank bonuses which triggered the whole global financial crisis as bank officials proceeded to turn the financial institutions they worked for into hollow shells as billions were banked on the basis of fictitious non existant profits whilst inept regulators watched on.
The only thing that has changed to date is that the power is now even more concentrated than before as the likes of Goldman Sachs continue to turn tax payer bailout cash into balance sheet profits having been aided by their ex CEO of and former Treasury Secretary Henry Paulson. Meanwhile the bankrupt banks continue to drain the resources of tax payers across the world as losses continue to be nationalised.
By Nadeem Walayat
Editor, The Market Oracle.
Copyright © 2005-09 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.
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