Gold New High on Fed’s QE2 Speculations

Posted by Richard Russell - Don Vialoux - IBT Commodities

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Monthly Gold Chart

Gold, as I write, was at a new record high.

I show below a monthly chart of gold going back to 1999. What we see here is one of the greatest, least loved, and least recognized primary bull markets in history. Since 2001 I have been cajoling, pressuring, begging, insisting, that my subscribers take positions in gold. I have no idea how many of my beloved subscribers have taken my advice, but judging from that fact that I still have 10,000 subscribers (near my best) I’m guessing that I still have a load of loyal (or at least interested) subscribers. Comment by Richard Russell – Dow Theory Letters

Monthly Gold Chart

Following Charts and Comment by Don Vialoux of Timing the Market. Go HERE for full Report.

The move by gold to an all time high yesterday is drawing attention to possible takovers of small and medium sized producers by larger producers.

Anglogold Ashanti plans to raise $1.37 billion in order to eliminate its gold hedge position, another vote of confidence that gold is expected to move higher.

Gold broke to an all time high on a move above $1265.00. Upside potential for this move is to $1,384 U.S. per ounce.

Gold Sept 15

Gold and silver stocks and related ETFs also broke to new highs. They continue to show positive strength relative to gold, a positive technical sign for both.

Gold Stocks

Weakness in the U.S. Dollar helped gold and gold stocks. The U.S. Dollar broke below its 200 day moving average yesterday, a level that previously offered support

US Dollar

Gold Market Update

15 September 2010 @ 03:07 am BST

Gold broke a new record yesterday as USD slumped amid speculations that the Fed will implement a more aggressive QE program by the end of the year. Comex futures of the yellow metal rallied to as high as 1276.5 before settling at 1271.1, up +1.97%. Others in the precious metal complex also jumped with silver, platinum and palladium gaining +1.39%, +2.87% and +3.29% respectively at close.

Speculations that the Fed will embark a new round of quantitative easing measures were rigorous after Goldman Sachs said that the central bank will purchase US Treasury securities cumulating to $1 trillion or more in late 2010 or early 2011. The investment bank believes an announcement in November is possible. Goldman however added that the impact on economy would be limited, probably boosting real GDP growth by a little under +0.5% per $1 trillion in purchases.

… more HERE