From Market oracle.. please read !!!

GOLD REFLECTS USDOLLAR INSTABILITY

The gold cartel is gradually losing control. They can put out a ‘double down’ futures contract short attack. They can reduce gold lease rates to below zero. They can avert a COMEX default at the eleventh hour. The consolidation process continues with a carving of the right side handle to the Cup & Handle reversal pattern in the gold price chart, as patience is surely tested. Support has been good at the more stable 50-week moving average, aided by the May 2008 support, both at the 860-865 level. Today on Thursday, the gold price finally jumped over the 900 mark, and even silver enjoyed a big rise of 3%. Currencies are being ruined universally, as governments debauch their supply fundamentals with what they regard as impunity and zero cost, very mistakenly. The costs come later, from price inflation, lost stability in the monetary foundation itself, and new unforeseen bubbles. The gold price target remains 1250 to 1300 once the 1000 mark is cleared. Watch for the potential of a bullish stochastix crossover in the green oval in the next week, an event that technicians would notice. It would signal a substantial move up soon.



Desperate measures like the EuroCB action (d) and surging COMEX open interest (e) are difficult to repeat and to sustain. Exposure renders great harm to the confidence pillar of the major currencies. The extremely promising bullish factors behind gold are many:

negative real interest rates
shortage of physical gold, whether bars or coins
advent of price inflation next year
Euro Central Bank rescue to avert COMEX default by Deutsche Bank
Surge in Open Interest since mid-March in gold futures contracts
Howard Ruff loves silver due to shortages, to restore the gold/silver ratio.
EXPECT THAT THE GOLD PRICE WILL MAKE NEW HIGHS FAR EARLIER THAN THE USDOLLAR SUFFERS EXCHANGE RATE DECLINES ON ANY BROAD BASIS. The Competing Currency War will keep the US$ propped for a while longer, as other currencies falter. However, the uniform competing currency devaluations serve to give gold (and silver) strength. Behind the scenes, some nations are taking stern action to firm their gold positions before the next crises, like this summer and again this autumn. In particular the Germans have ordered the return of all gold bullion home from US shady custodial supervision, while the Arabs are purchasing every available gold bullion ingot from global warehouses in private sales. They want the IMF gold next.