Gold Holding Above Support
By Richard Russell
For a change, no new record high in the Dow. Forty minutes before the close, the Dow is down 29 to 18,195. I think gold is acting reasonably well and is holding nicely above its support at 1200. As I write gold is selling at 1208 and looking as if it is ready to attack the 1300 resistance level.
Surprise, negative news is creeping out about the US economy and if this continues, which I think it will, any boost in interest rates will be out as far as possible.
If it turns out that we’re back in a recession, I would not discount the return of quantitative easing. The world is caught in a cycle of deflation and deleveraging and every central bank is fighting the deflationary trend. I continue to think that the best defense against deflation is a sudden overnight boost in the price of gold. Gold ... Log in or subscribe to continue reading.
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