Thursday, May 20, 2010

"Gold is on track to achieve its forecast target of at least $1,333 this year -sooner rather than later "

"Gold is on track to achieve its forecast target of at least $1,333 this year -sooner rather than later "

May 20, 2010 ( mining stocks newswire ) As investors try to navigate uncertain equities and commodities markets , one expert thinks gold is going much higher. The following commentary on gold and the US dollar was part of an article published on May 18th .

Gold and U.S. Dollar Inverse Trend Myth Busted
By Nadeem Walayat

Full article - Stocks Bull Market Hits Eurozone Debt Crisis Brick Wall, Forecast Into July 2010

Do you hear the deafening silence amongst the U.S. Dollar doom merchants ? Remember when you were being repeatedly and relentlessly told that it was impossible for the U.S. Dollar and Gold to BOTH Rise together?

It was either Gold will Soar, and the Dollar will Crash, or that the Dollar would rise and Gold would Crash, but never that Gold AND the Dollar would rise together.

Well that's another market consensus myth well and truly busted, and there is little point now AFTER the fact, AFTER Gold and the Dollar have already risen to come to the realisation that okay Gold and the Dollar could rise together.

Gold is on track to achieve its forecast target of at least $1,333 this year (sooner rather than later), whilst it has traded to a new all time high in dollars, that's nothing compared to the levels seen Gold soar to when priced in sterling and euro's. My in depth analysis (02 Nov 2009 - Stocks, Dollar and Gold Bull Markets Inter-market Analysis ) concluded in strong bullish trends for Stocks (9,712), Gold ($1046) AND the U.S. Dollar (76.36), which prompted many emails and comments that my analysis must be wrong as there existed a strong consensus view that Gold, Stocks and the Dollar CANNOT Possibly ALL move in the same direction. Well more than 6 months on, that is another market consensus myth well and truly busted, with many now concluding AFTER THE FACT that perhaps Gold and the Dollar COULD both rise together after all, since which both Gold and the Dollar have appreciated markedly.

The US Dollar bull market has already achieved its long standing target of USD 84, and is on route towards resistance at 89 which I am sure will puzzle many americans reading this as they full well know of the huge amounts of debt that the U.S. Government is busy issuing to finance its own budget deficit, this is the advantage of having the worlds reserve currency and as a consequence of Countries such as the UK and Eurozone adopting panic measures to INFLATE their economies and DEVALUE their DEBT through competitive currency devaluations (See Inflation Mega-trend Ebook - FREE DOWNLOAD ). It increasingly looks like the U.S. Dollar far from crashing as many have iterated during its stealthy rise, may in fact just be getting warmed up for what is to come as the Euro targets PARITY to the Dollar Yes that's right PARITY ! I will seek to update the U.S. Dollar bull market trend to cover the next 6 months within a week or so.

Your existing outside of the box analyst looking to pick-up cheap long-term investments during market panics.


By Nadeem Walayat

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on UK inflation, economy, interest rates and the housing market and he is the author of the NEW Inflation Mega-Trend ebook that can be downloaded for Free. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 500 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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