Gold has been consolidating for months now and a large move has been expected. The big question is whether it is going to be up or down. The Jury is still out on that but Gold has been an absolute beast the past two days up over 3.5% with the biggest move since March. As I write this Gold is $992/oz just $8 shy of $1,000/oz.
$1,000/oz is HUGE. It is the upper technical boundry for the consolidation triangle and it is a giant psychological boundry. Gold could very well hit $999.99 and start heading back down but I wouldn't bet against it right now, every dip is being bought.
So why is it going to $1,000/oz? Fear. Fear of a crash, Fear of Inflation, Fear of Deflation, and Fear of Counter Party Risk (Paper Money). Very rarely do so many camps agree on one asset class but the stars have aligned and right about now it looks like destiny.
Please also remember that certain financial institutes are selling and buying "IOUs" in Gold in order to manipulate markets. The actual gold price is way over 1000 already, I espect it to reach 2000 within a year and peak around 2300 somewhere 1,5 years from now. But that all depends on how fast everything fall down around us.
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