Tuesday, September 28, 2010

Fed policy continuing to fuel record gold prices

The Federal Reserve and many central banks are printing money in a futile attempt to devalue their currencies relative to their trading partners in order to stimulate their exports. However when many countries try this the only outcome is higher gold and commodity prices. The above charts are super overbought and trading way above their 200 day moving averages. I would not be a buyer here as I expect a pullback. If you have cash available prepare your buy list as I expect a pullback to be short and sharp so you will have to move quickly to take advantage of bargains.

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