GoldCore Insight – Currency Wars: Bye Bye Petrodollar – Buy, Buy Gold
By Paula Flood
GoldCore.com
22 Feb 2013
Gold recovered on Friday, adding to gains yesterday on news that the U.S. economy is still faltering and concerns that the U.S. Fed’s QE will continue despite assertions to the contrary.
The U.S. economic growth stalled in Q4, and the jobless rate rose up to 7.9% this January.
Investors will look for clues in Bernanke’s testimony before the U.S. Congress on Tuesday and Wednesday. However, the fiscal cliff drop is still dangerous as the U.S. government will embark on spending cuts, debt limits and the U.S. Fed has every reason to keep its stimulus package in place.
Smart money bought the dip yesterday, especially in China where premiums in Shanghai were nearly $20/oz over market prices.
In the Eurozone, the EU commission said today that Europe will not recover until 2014.
Fearful investors continued liquidating positions in ETFs like SPDR Gold Trust, which saw its largest one day fall in positions yesterday in the past year and a half
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