Tuesday, April 22, 2008

$950 before $900?

Gold has formed two inside days in a row, each with strong volume. Today's headlines were filled with news about the euro's rise above $1.60, reminding the markets about the ECB's determination to fight inflation, even if it has to raise rates. This is indeed a drastic contrast to the Fed's primary mandate of stabilizing the markets at all costs, both financially and (il)legally. Considering such contrast to the ECB, it would be nice to see some vigilante action in gold to test the guts of the Fed. I would go so far as to say...$1000 before $900!

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