Geowizards Analysis;
Today, it's down. Here's why:
Gold prices going up reflect the weakness of the US Dollar. As soon as we see an increase in GOLD prices, it is followed by a sharp downward spike as we see today. A "BIG" player is selling HIGH and driving GOLD prices lower! The Fed and the Treasury have a hand in this. They monitor GOLD. As the USD takes a hit, GOLD goes up. It takes MORE USD to buy the same troy Oz of GOLD! That's inflation.
The weakness in the USD against GOLD has to be controlled and can ONLY be controlled by one player in the market. GOLD goes up -> the Treasury dumps GOLD on the market -> driving the price down. This regulates GOLD and the USD within acceptable bounds. The treasury has 8000 +/- metric tonnes of GOLD. The price of GOLD going up should be good news for the treasury! The problem is - it shows a weak, "worth-less" USD.
Most adults in the room understand the problem with overspending and borrowing money to pay the interest on the loan. It's called borrowing your way out of debt.
Stick around and watch GOLD Spot right here with free commentary!
- Geowizard