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The financial sector is fueling this uncertainty. The Fed's Operation Twist isn't bringing about any enthusiasm. Bernanke has made his plea to Congress ("Congress, do something!"), but the President's derivative jobs bill is all that's on deck. Meanwhile, Europe is burning.
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So shouldn't gold be going up? Sure, but not necessarily in dollar terms. With Europe burning, gold is good to hold in terms of euros. However, the chart below shows gold in dollar terms. Since euros are becoming toxic, currency people are flocking to king dollar (lower case intentional) because it is still the safety trade (despite the S&P downgrade). Thus, gold's price in dollar terms doesn't lead to higher prices - yet.
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Here's a follow-up on Bank of America. A slightly different take on what I've posted before. My thesis is still the same. a $3 handle coming soon.
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Here's a favorite I like to follow. This is how I'm stalking it for the right entry.
Last Week's Best
-R
