by Gary Christenson, Deviant Investor:
From Jim Richards’ Strategic Intelligence:
“Russia and China are well-positioned to execute the greatest gold short squeeze in history. Of course, they have no interest in doing so right now because both are still buyers who favor low prices. At some point, they will flip to hoarders who favor high prices, but not yet.”
From Hugo Salinas Price:
“The present monetary system of the world, based on the dollar, is on its death-bed. A fiat currency – such as the dollar – cannot be replaced by another fiat currency, he explains. Therefore the world will necessarily have to take up [precious metals] as the world’s money.”
From Steven Warrenfeltz of www.free-bullion-investment-guide.com
Last week, after the dust settled from gold’s price drop, a ‘falling expanding wedge’ formed in gold’s price chart (below).
All falling wedges are positive technical patterns, however for gold to confirm the pattern it will need to break above the upper resistance trend-line of the wedge.
In addition, gold’s MACD (lower indicator) is showing that its direction is about to change from negative to positive, so we should continue to see gold climb this week, but some profit taking is also expected as it moves up.