Larry Edelson is still expecting gold to fall back toward and below $1500. Jim Sinclair points out that gold has held support above $1550 for eight consecutive times. He does not see a big hit for gold at this time. Who do you want to believe? I put my money on Uncle Jimmie.
Every passing day is another day closer to a strong move up for gold. The only question is whether the move starts in July or a month later. But I just don’t see a big pullback coming now. Gold has been correcting for nearly a year and QE can’t be far off, and with it, the bull market in gold is reborn.
But first things first, and we have to get by Tuesday. Ben Bernanke testifies before the Senate today and the traders “are holding their breath” waiting for a clue from King BB. Personally, I’d rather listen to BB King myself. His words, at least, have real meaning. (Such as “Nobody loves me but my mother and she may be jiving too.”) What can King BB say? Europe is screwed. Our economy is falling off a cliff. The banking system is facing another black eye, LIBOR style. He can say nothing – hold off for a while longer as things continue to unravel or he can use one of his last bullets and say it’s time for another round of QE. Actually, that is his only choice so the question is will he use it or not? Dare he wait any longer? Gold awaits his answer.
As usual, the Gold Cartel steps hard on gold going into the testimony. It’s not that they believe he will offer up nothing today, it’s just their usual M.P. to hit gold on every possible opportunity. These guys are “short” gold and they make money when they influence its price down.