Message Font: Serif | Sans-Serif
No. of Recommendations: 0
What do you think will happen to Gold if Euro Zone dis-integrates?

Hard to say....I'd really just be guessing. A very messy break-up should send deflationary shockwaves through the global economy which would be bearish for gold, but you also could see Europeans using gold as a flight to safety.

FWIW, I got out of my long gold trade the day before the Fed/Bernanke announcement at around 1607.

I believe the extremely choppy, almost schizophrenic price action in gold represents the massive uncertainty on a day to day basis as to what the Fed and more importantly the ECB will do.

At least to me right now, I get the sense that most markets (except U.S. stocks) are starting to consistently price in continued deflationary expectations (U.S. Treasuries, crude oil, the broad commodity complex)

FWIW, I'm watching silver right now for a potential short trade. Silver is tracing out the mother of all descending triangles off the April top of 50. 26 and change has been a bounce point about 5 times since early 2011. A close below 26 to me would suggest a sizable downmove perhaps retracing all of the bull move starting in summer 2010 which would take silver back to the mid to high teens.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.