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Has a Gold Bottom Formed?
Pinnacle Digest writes: Gold seems to be on a one way path downward - at least that’s what some investors seem to think as they bail on the only proven long-term currency the world has ever seen. On the flip-side, the investors standing behind gold seem to think a bottom has formed, but Adrian Ash explains that it may still be too early for that.
The weakness in the euro has fast-tracked gold’s descent while magnifying the safe haven status of the US dollar - despite record deficits and rumors that a global stimulus is being planned.
Adrian Ash explains how we currently find ourselves in a credit deflationary environment. This is expected to create more turbulence for gold and silver over the short-term. However, with a fragile US economy, a rising dollar could be short-lived as exports will inevitably suffer from its rise.
Adrian Ash states “On its trade-weighted index the Dollar has reclaimed only an 18-month high, and has barely dented its 35% drop of the past decade.”
Click here to read an article on gold’s weakness and the troubles it faces in the near-term.