The surprise rally in gold and silver

Gold appears to be making a reversal at oversold and long term support levels, breaking a 5-month downtrend. At the end of 2011, Merkel and Sarkozy got together for an unusual emergency meeting. They pledged to come up with economic salvation. Immediately the equity markets mounted a year end “Halleluyah” rally. Bernanke followed Europe's footsteps in 2012 and expanded the horizon of record low interest rates from Mid-2013 until Late 2014. We respond judiciously to this euphoria. Politician's promises are usually a thin blanket for an upcoming cold night. We have concluded since October that a surprisingly potent rise may occur which would be in reaction to the application of the stimulative paddles. The European resolution was a response to the Franco-Belgium travails of the widely held Dexia Bank, which has tentacles into France and Germany's economic foundations. If this were not enough, the chronic Greek malaise indicated that Zorba was in need of another oxygen mask to rouse him from his hedonistically induced torpor. Continue reading this article

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