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Monday, August 19, 2013

What will happen if the FEDS don't taper?

The next few weeks could be very exciting for gold. If the Fed doesn't taper in September that will be another blow to the U.S. dollar. Dollar weakness would make gold bullish. Also, we need to keep an eye on the horizon, over the next few months lies a series of U.S. fiscal challenges including the debt ceiling, the budget and continuing resolution issues. These all could potentially provide bullish for gold.Watch for dips in precious metal in the weeks or months ahead anything on the dip buy it in my opinion. Comex December gold futures are overbought on a daily. This is the worst the Comex has looked in history. They are at historic lows of physical supply. It's highly probable that the Comex will default coming up. As everyone confidence is being broken down it's going to cause a rush into physical demand. Asia sales have been over whelming. They are acquiring the metals at an alarming rate. I remember talking on this subject many years back, that when Asia was allowed to purchase precious metals it was going to be a game changer in history.That demand will push over the markets. Stay tuned for future updates!

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