Auguries - September 21, 2012
Everything Is Negotiable
Kevin Michael Grace
Gold was down (at press time) $1.80 (-0.1%) for the week to $1,771, and silver was unchanged at $34.69. GoldCore notes, “Gold has completed what is known as a ‘Golden Cross,’ and silver is poised to complete one in the coming days. A ‘Golden Cross’ occurs when not only the current price but also shorter-term moving averages such as the 50-day moving average “cross” or rise above the longer term 200-day moving average…. These are important indicators of longer-term technical strength and, in conjunction with the recent positive technical picture, are bullish.”
According to GoldCore, “All eyes will be on China.” This is a reference to possible quantitative easing, not to the border dispute between China and Japan that Ambrose Evans-Pritchard, in the Telegraph September 19, calls “the paramount political and strategic story in the world today.” He compares the dispute to the Agadir Crisis of 1911 and argues, “It is a stretch to date the First World War from Agadir but not a big stretch.”
Read the rest of this article about gold prices (with a bit of Kate Middleton thrown in for economic illustration of scarcity).
