Gold Breaks Out and Consolidates Above $1,700/oz – Financial Alchemy Risks Severe Inflation

Wednesday, October 26, 2011
By Paul Martin

From GoldCore
ZeroHedge.com
10/26/2011

Gold has extended yesterday’s 4% rise in the US, with further gains seen overnight in Asia and consolidation in Europe. Safe haven demand continues due to increasing risk of a failed outcome from the European Union leaders’ meeting scheduled later today and due to significant macroeconomic and monetary risks.

The cancellation of a European finance ministers meeting and downplaying of expectations by euro-zone officials about the outcome of the EU summit is adding to investor concerns about contagion emanating from the nexus of European banks and large sovereigns including Italy. There are conflicting reports that Berlusconi has agreed to step down.

U.S. Treasury Secretary, Timothy Geithner warned of the “catastrophic risk” posed by the turmoil.

The Rest…HERE

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