Gold Bears In Trouble As Central Banks Continue Buying
August 11, 2012
With market participants eagerly waiting to see if gold and the mining shares will have a major breakout during the month of August, today King World News interviewed 25 year veteran Caesar Bryan over at Gabelli & Company, which has over $31 billion under management. Here is what Ceasar had to say regarding the gold market, Europe, the US, and mining shares: “The gold price has continued to trade over $1,600 as of late. It seems to be putting in higher lows since May, and I would expect the gold price to perform pretty well as the summer ends and we come into the seasonally strong time in autumn.”
Caesar Bryan continues:
“Meanwhile, we’ve had the news that the Korean Central Bank has added 16 tons of gold to their reserves. But the key here is we can now emphatically state there is absolutely no question that central banks now, on dips, want to add to their reserves.
We also have other key central banks around the world continuing the policy of debasing their currencies, and this continued debasement is a clear signal to these other central banks to keep on accumulating gold. This has to be troubling to the gold bears. The bears have made repeated attempts to break down the gold price, but all attempts have failed.
So this is a perfect setup for the gold price to move higher, not only in US dollars but also in terms of other currencies as well….