We are nearing a breakdown in the US dollar with a target towards and under .7200. That means we are nearing the visible result of a currency event in terms of prices in general commodities.

The CIT failure means without any doubt upwards pressure on short term interest rates. The Fed will cave into Administration pressure, increasing Quantitative Easing to a level best described as infinite.

Gold will take out $1000 on this try with a very temporary retreat before it moves fully through. Gold will move to and through $1224 with a temporary battle. Gold will move toward $1650 but meet serious temporary opposition in the $1400 area.

All of this will occur starting quite soon. Hold on tight to all that is precious metals.

Stay the course.

Respectfully yours,
Jim in Dubai