Americans tend to focus on American numbers but Europe is in far more serious trouble, the founder and former head of Princeton Economics Ltd. says. But he adds that US politicians are wrong in their approach to tax codes.
Continuing Chinese gold accumulation has important long-term significance that is not generally acknowledged by many gold analysts and market pundits. China’s private- and official-sector gold purchases are unlikely to be sold back to the world market any time soon.
One thing is certain. A free floating yuan would be at least 50% higher than it is today, and possibly 100%. I can say this in confidence having watched the Japanese yen appreciate from ¥360 to the dollar to ¥75 while running a trade surplus of similar magnitude.
Gold fell today as the US dollar rallied to its highest price in more than seven weeks. Investors may be waiting for the US Federal Reserve meeting tomorrow before making further commitments in the market.
Despite the winding down of East Asia’s Lunar New Year gold buying binge, I expect the yellow metal’s price will continue to move up in the weeks ahead – but not without some struggle as gold works to reestablish upward momentum and renewed credibility.
Gold bullion continued to trade in a range bound fashion around $1,758 per ounce - 8.3% above where it started October - following the release of US nonfarm payroll data, which showed the US economy added 80,000 jobs last month.
Half of Monday's gains in gold and all of the advances in silver were given up in New York this morning by the two precious metals as the US dollar stopped declining and as crude oil fell back about half a dollar.