Tuesday, February 21, 2012

Gold surges once again back over $1750 an ounce

Gold responded this morning to the validation of a Greek bailout by moving up more than $20 to a nominal high of $1758.  This break over $1750 is in response to the bailout being tied to new and massive money printing required by the central banks to save Greece.

…we said "As a reminder, when gold was at $1900 last summer, central banks had pumped about $2 trillion less into the markets. We expect the market to grasp this discrepancy shortly." With gold about $30 bucks higher, the market is finally starting to "grasp it", and is now back to $1755, as silver passes $34. - Zerohedge

$1800 should not be too far away as the next round of QE infinity begins to bail out the system once again.


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