Two Days Late Posting... But That's Okay. Nothing Much Happened Since

DUST For Fun!

Worry worts around the waterhole are that PoG is going to drop in the short term only to soar as soon as Spain starts asking the EU for some cash.
PoG @ $2,000/oz. by year end is being freely bandied about.
In the meanwhile, while PoG is consolidating with nothing much to do I'm expecting a drop to the TA box between $1,550 and $1,600.




October 19, 2012 14:24
The Gold/Stock Correlation: What Is It Telling Us Now?
""The U.S. government will likely exhaust its headroom under the current debt limit within a few months and we expect the Treasury to suspend normal issuance of non-marketable debt by the end of the year. Specifically, we expect that the outstanding federal debt to reach its statutory limit around the end of this year," wrote Nomura economists in a recent research note.

This comes on top of ratings agency Moody's recent warning that they could downgrade U.S. debt before year-end if no deal is struck to address long-term debt and fiscal issues. What does this all mean for gold? Even if stocks sell-off later this year, if the Washington policy makers fail to quickly and adequately address the U.S. debt ceiling and come to agreement on a long-term debt deal, gold could likely once again decouple from stocks and surge higher."

October 20, 2012 03:56 GMT
Gold Correction Gathers Pace- $1693 in Focus Ahead of FOMC
"The European Summit which began on Thursday offered no clarity as to the steps policy makers will take to address the ongoing crisis that has gripped the region for nearly three years. In fact, German Chancellor Angela Merkel prepped markets, stating that she expects no decisions to be taken this week as policy makers lay the ground work for the December meeting where they will discuss steps towards further economic, monetary and financial integration among the member states.

Looking ahead to next week, gold traders will be taking cues from the FOMC interest rate decision on Wednesday and 3Q GDP data on Friday. Although the central bank is not expected to alter its policy stance, investors will be closely eyeing the accompanying statement for an updated assessment of the domestic economy. With headline CPI data this week coming in above expectations at 2.0% y/y, traders will be closely eying the statement’s language as it pertains to inflation. The Fed has remained unwavering with its expectations for price growth with the September statement citing that, “Inflation has been subdued, although the prices of some key commodities have increased recently,” and that, “Longer-term inflation expectations have remained stable.” Should the statement cite added concerns about rising prices, look for gold to remain well supported as investors flock into bullion as a traditional hedge against inflationary pressures. On the other hand, if there’s no change, gold is likely to continue to track risks as gains in the greenback weigh on precious metal."


October 22, 2012 8:05 AM
Gold Firmer on Light Short Covering and Bargain Hunting
"In overnight news, European stock markets were firmer along with the Euro currency amid Spanish elections that showed the ruling conservative party doing well. Such bolstered notions Spain will be seeking EU financial assistance in the near term. There was some disappointing economic news from Japan that suggests the Bank of Japan will implement fresh monetary stimulus measures soon. Otherwise, it was a quiet start to the new trading week in Asia and Europe. Tensions in the Middle East are ratcheting a bit higher following fresh violence in Lebanon. Focus of the market place this week will be on Monday night’s U.S. presidential debate and on the latest meeting of the U.S. Federal Reserve’s FOMC, which begins Tuesday."