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Wednesday, April 13, 2011

WHAT COULD KNOCK THE WIND OUT OF GOLD

THE FEDERAL RESERVERS CHEAP DOLLAR POLICY IS A BIG PART OF WHY GOLD WENT UP:
What if the Fed changed its cheap dollar policy by raising interest rates and the dollar strengthened? Gold then would take a big hit.
The American dollar would go up if the economy improves. And that could happen if companies that have been effected by Japans earthquake and nuclear power plant disaster take a second look at the stable U.S as a safe place to manufacture.
Then more good paying jobs would be created which would also put more money into the economy and then people would spend more money and more demand will be created.
Then the Fed will raise rates which will strengthen the dollar. And gold prices will start going down.
P.S. GOLD CHARTS CONTINUE TO LOOK VERY BULLISH AND THE METALS LOOK LIKE THEY ARE READY TO TAKE A LEG UP. ESPECIALLY GOLD