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Currency War: EU, UK and China on Full Attack
Pinnacle Digest writes: Gold is consolidating once again, even amidst record interest rate cuts and stimulus from the Euro Zone and China.
The ECB and Euro Zone have put up $149 billion to reduce funding costs, for Italy and Spain. This may ease the EU crisis for a short while. US jobs data reported on Friday were weak to say the least. If weak numbers continue heading into the election, it may be enough to get QE3 back on the table.
Handwerger identifies a bullish trend for gold as the precious metal has seen positive reversals in the summer months for 3 straight years. As any mention of austerity is quickly shunned, countries such as Japan, England and the EU continue to monetize their debt in hopes to devalue their currency and spur growth.
With the euro currency falling from the sky in value, it will not be long until the Fed is forced to act as it cannot afford to lose the battle at this stage of the currency war.
Next week could be exciting, especially if we witness this worldwide coordinated effort to stave off a pandemic meltdown before the 2012 U.S. presidential election.
Handberger comments that, "The second half (of 2012) could represent an explosive move in the yellow metal as a coordinated worldwide stimulus begins."
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