The Dollar is in the middle of what some experts call a Dead Cat Bounce; where a seemingly dead stock, bond or currency will make a short term gain before its total collapse. I am in no way calling for the death of the Dollar, in fact the specter of that scares me more than a post-apocalyptic Kevin Costner movie marathon. (think The Postman & Water World all 7 hours) This boost in the Dollar over the last month is spurred on by central banks making Dollars easily available to keep liquidity through the end of the year.
Yet, Gold is being pressured up ever so slightly by the continued debt crisis in Europe & the U.S. Gold also has pressure on it now India is moving into the wedding season through the rest of the year. This will continue to push Gold back towards the $2,000 mark the closer we get to 2012. Should inflation creep in over the next couple of months Gold’s response could push it over the $2,000 mark.
The fundamentals pressuring Gold are in tact leading us to believe there will be a push forward through the end of the year. Bargains are still to be found in the Gold & Silver markets. Take time, look into adding to your Tangible Asset Portfolio and cash in on the end of year push to $2,000.