TMO: Gold Jumps Without U.S. Dollar Drop, Separation Before Liftoff
The latest development in the gold world is highly favorable. Summarize by saying from the rooftops that GOLD LEADS THE CURRENCIES in price movement. Gold is not only a metal, but the most important of currencies, whose importance will soon be confirmed on a worldwide basis. The enlightened realize that if gold had been a core to the banking systems, and to the currency systems, that the entire bank credit crisis would not have occurred. The dimwitted that dominate the landscape still utter nonsense about gold, only to have their prattle squelched and overrun, as it seems so tiresome and vacant anymore.
old has begun to respond finally to the global ruin of money, to the Western government fiscal ruin, and to the ruin of the United States and United Kingdom banking systems. The price movement in gold & silver has suddenly turned favorable, although this is an early stage, in spite of the lack of decline in the USDollar. That is the main point. Gold has risen without a lead by the crippled USDollar. Silver has followed. In the last couple hours when this article was penned, gold has risen to 992 and gold risen to 15.90 in nice continued movement, both without any jiggle even to the USDollar or US stock market indexes. The crude oil price, subject of much debate concerning its tether as hedge to the USDollar, has been quiet as well. Gold has begun a stealth rally, an exciting one to come!
CLOSE-UP PICTURE ON GOLD
Like an EKG chart, the very short-term daily chart resembles the electrical activity of a human heart. Except this golden heart has begun to race fast. Watch as even the gold community will show doubt in believing the gold price move. They are so drained of emotion from failed rallies at the $1000 price gate, that they might need a surge in the gold price over $1200 in order to feel glad or giddy, let alone believers in the breakout. The important point is that gold has risen out of its tight 940-965 range in effect for several weeks, and RISEN. The gold price has risen without benefit of a weaker USDollar. It will next challenge the $1000 level in a natural progression. The real debate is whether the gold price will surpass the $1000 level with or without a key signature event. In my view, it simply does not matter. That is like asking whether the sun will rise with or without clouds.
Silver has moved in tandem with gold. It actually fell more in the last year than gold, and now shows more leading thrust power than gold. It has some ground to overcome. The gold/silver ratio remains too high, and must be addressed within the market for precious metals.
The USDollar has NOT demonstrated any notable weakness in the last week. It remains bound in a tight range. The past few weeks have seen the US$ DX index rise and fall, then rise and fall, only to find itself stuck inside a tight range. Numerous news items have come though, enough to tarnish the billboards. The FDIC has announced greater bank losses, and longer distressed banks in a list, a depleted fund, nil loan loss reserves, and new threats from the commercial loan segment. The USEconomy shows signs of life, but needs all sorts of canes and crutches and gurneys and intravenous infusions and boneheaded clunker programs even to struggle in walking. Most signs of life are phony anyway, assisted by twisted perceptions. The Chinese defiant rebellious position of futures contracts has colored the entire sky, except to the Wall Street folks who wear too many tinted glasses to notice.
BIGGER PICTURE FOR GOLD
The bigger picture must address the three pennant pause patterns extremely clear to view. Only the precious metals have broken out of the tight pattern, enough to warrant early conclusions. My conclusion has a headline that gold & silver now should be recognized as leading the USDollar and other currencies. The Competing Currency Wars will continue on their merciless path of global asset destruction and economic deterioration. Damage to other currencies tends to render the USDollar is less pathetic light, no more, no less. The nations that drop the USDollar standard and abandon the USDollar structures will be the first to emerge. Those nations with ample reserves will also fare well. China will remain a mystery. It hitched its wagon to the US$ parade for too long, finds itself in possession of too many US$-based bonds, and is greatly dependent upon a US$-priced global export trade. While debate continues concerning the Middle Kingdom, they will continue to disrupt the US-UK Sphere of influence and global domination.
The gold price has clearly broken out of its pennant pause pattern. The magnitude of the potential lift is roughly $70, from 910 to 980. Look for a 70-point lift from the breakout, which should take the gold price to around $1030 soon, real soon. The vast energy built over the last several months will come to power the move onward and upward.
The silver price has also clearly broken out of its pennant pause pattern. The magnitude of the potential lift is roughly $3, from 13 to 16. Look for a 300-point lift from the breakout, which should take the silver price to around $18 soon, real soon.
The USDollar remains within the bounds of its pennant pause pattern. It awaits instructions. Those instructions are likely to be a death sentence at worst, and a shove into the Third World at best, with an option of a return to normalcy not even remotely possible. Its USGovt debt security is gradually being recognized as in tatters, where the custodians are working feverishly to destroy whatever value is lodged within its corrupted bowels. A Banana Republic bond is what is offers, complete with Zimbabwe Printing Pre$$ support, USMilitary protection, a Goldman Sachs syndicate to uphold it, and narco war profits to provide its only weighty ballast (not to be shared).
