Looking at the Gold Market week ending April the 6th 2007 you would have to be quite happy seeing the Gold making an upward move to take out it’s most recent high of 692.5. Even though many Gold stocks have refused to follow the move upward in physical Gold it is only a matter of time when the dollars begin to flood the market in search of quality stocks in a very small capitalized market.
Can you visualize the outcome when the penny drops???
Below is a Comex Gold Futures chart following on from last weeks market action ….
Now let us look at the U.S Dollar’s performance or lack of for the week ….
Last week we had a “MAJOR” development quite unexpectedly and very politically motivated regarding the placing of tariffs and duties on certain China imports into the U.S.
Monty Guild Of Guild Investment Management Site believes …
“The surest way to destroy the world economy is to damage free trade. The potential for wealth destruction caused by tariffs, import duties and the failure to allow and encourage free trade will undoubtedly be much more damaging than ten crises like the subprime debacle”.
Even though the U.S Dollar made a late recovery on friday the dollar’s outlook is not bright looking into the future …
Next week we have an interesting week regarding the release of Crude Inventories, FOMC Minutes, Treasury Budget, Trade Balance and Core PPI figures. Stay tuned as the market reacts and digests the news …
