Photo: Casey Research via YouTube
Richard Russell likes gold, and he thinks the yellow metal could soon shoot north of $1,800/oz.In an excerpt from King World News, Russell points to the charts:
Gold (above chart) has formed a broad head-and-shoulders bottom with the upside breakout coming in at 1800. April gold has been hammering on the 1700 support level for days, and so far 1700 has held. If 1700 won’t give way, then gold should be able to take out 1800. What won’t go down — should go up. At least that’s the theory.
The economy turns unexpectedly weak, and the Fed (remember the coming presidential election) goes all out in creating tons of more money. This hurts the dollar and gold goes higher and higher.
It’s all based on the thesis that global deflation will hurt business, including US business. Today every nation wants to export, which means that every nation wants a ‘cheap’ currency. Beggar thy neighbour is the trend.”
Read the rest at King World News.
Photo: King World News – Blog