Bullish, But Expect A Pullback
The World Outlook Financial Conference
Friday, February 10 and Saturday, February 11
Westin Bayshore Hotel, Vancouver, B.C.
I will be presenting. Don’t miss it!
Here is the link:
http://tinyurl.com/72asl7p
Due to travel and preparation for this event, there will be no Leibovit
Gold Letter published that weekend!
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Gold skyrocketed last week after the Federal Reserve said it would likely
keep interest rates near zero percent through 2014. With interest rates down
near zero, traders see no point holding cash or even intermediate paper that
earns less than inflation. In contrast, gold historically keeps up with inflation.
Intraday on Wednesday, after the FOMC announcement, gold jumped 65.80
or 4.0%. Additionally, a weak Dollar--it fell every day against the Euro
and the US Dollar Index was down 1.8 percent on the week--also helped
precious metals. For the week, gold rallied $70.30 or 4.2% to $1737.30, its
best close in seven weeks. Silver gained $1.79 or 5.6% to $33.99, its highest
in more than two months. Platinum jumped $88 of 5.7% to $1619, a more
than two-month high. Palladium was up $12 or 1.8% to $689. Copper rose
$0.1440 or 3.8% to $3.8890 and hit a four-month high of $3.9390 Friday
morning.
The gold price is driven by Fed policies and its bias toward printing money
rather than defending the dollar’s purchasing power. This Fed bias was
again reconfirmed by this announcement. With all the Fed’s renewed vigor
toward keeping rates low longer, we can once again reconfirm the ongoing
downward slide for the dollar. As a result, gold remains the best investment
against the damaging government deficits and central bank policies around
the world.
More here: http://www.vrtrader....etter120130.pdf
