Gold is an emotional barometer for the world economy. If the world economy is healthy gold stays low and if sick gold goes up. Right now gold is going up fast, alarmingly fast.
We know that gold trades in USD ( U.S. Dollars ) so if the dollar slips in value due to poor fiscal policies which we are now experiencing the dollar will move lower and gold moves higher, but not this fast.
Today's meeting at the White House with the President, high ranking congressmen and the military was said to be about Afghanistan. Don't think so ! The gold action today spilled the beans on that little gathering, big time.
I know, you heard that some members of OPEC had a meeting last night and it was said they talked about trashing the dollar and replacing it with a basket of currencies to buy oil which is also bought in US Dollars. Don't think so !
My belief is that the meeting was about Iran not Afghanistan. The Administration cannot telegraph any move against Iran whether it be military or sanctions. But, gold figured it out and soared today. If my thesis is correct, gold should move up, much higher, along with oil as a final confrontation with Iran moves closer.
What is more troubling to me personally is that gold moved up much more than oil. Of course oil will be a problem if Iran is attacked. With an Iranian blockade of the Strait of Hormuz oil will move to $150+ a barrel and global economies will be traumatized.
But that's not what troubles me. It's gold.
When you see gold move this quickly its more a sign of a future catastrophic event or events.
I feel the market is pricing in a direct attack on Iran soon, with a not so pleasant outcome. That's the problem, "the outcome". If the markets are pricing in a ugly reaction from Iran I would imagine just about anything could happen including Iranian terrorist in the U.S. or a nuclear detonation in the Middle East.
Bill O'Reilly on his TV show has been stating that if there is an attack on Iran it will quickly turn into a regional and possibly a global conflict.
So, watch gold and maybe its time to start digging that fallout shelter in your back yard.
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