Buy every $20 break lightly and sell it $75 higher. Gold is headed to $887.50 and then $1050 most likely sooner than anyone anticipated. This time gold might not come down as it did in the 80s. This is the likely product of a revitalized and modernized Federal Reserve Gold Certificate Ratio tied to a liquidity measure, not interest rates. This is it!

The US dollar could be at .7200 as soon as next week. That makes gold $887.50 in my opinion.

Metals - Gold buying picks up as dollar collapses to new low
November 23, 2007: 05:06 AM EST
(Updates prices, adds details)

LONDON, Nov. 23, 2007 (Thomson Financial delivered by Newstex) -- Gold rose as the dollar collapsed to an unprecedented low against the euro and as oil prices, near 100 usd a barrel, sparked inflation jitters.

Gold benefits from an ailing greenback as those trading in other stronger currencies find dollar-denominated commodities to be cheaper.

Sky high oil prices meanwhile, which have almost doubled since mid-January, stoked worries over inflation -- to which gold is bought as a hedge.

'Buying is still pretty aggressive,' said Standard Bank analyst Walter De Wet. 'The buying we saw at the beginning of November was probably more of a knee-jerk reaction to dollar weakness,' said De Wet.

Gold surged to 845.58 usd an ounce early November, just 0.5 pct lower than its all-time record high price of 850 usd in January 1990.

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Jim Sinclair’s Commentary

The size of the problem will dictate the extent of the central bank's reaction worldwide. It will get out of hand.

The case study is the Weimar Republic. Drop the phrase "War Reparations" and replace it with “$500+ trillion in over the counter derivatives.” The degree of disintegration is not the point. The point is cause and effect.

ECB set to pump cash into money markets
By Ralph Atkins and Ivar Simensen in Frankfurt and David Oakley in London
Published: November 23 2007 11:46

Fresh emergency action to pump funds into the money markets was announced on Friday night by the European Central Bank amid renewed fears that liquidity in the credit markets is again starting to dry up.

On Friday night, the bank said it would inject an unspecified amount of extra liquidity next week, noting ?re-emerging tensions? ? and would do so until at least the end of the year.

Earlier, Jean-Claude Trichet, ECB president, had pledged continuing action to keep short-term money market interest rates in line with its main policy rate.

The new promise of intervention came as three-month US interbank rates rose for the eighth day in a row to 5.04 per cent, more than half a point higher than the US Fed Funds target rate of 4.5 per cent.

Three-month money usually trades just above the Fed Funds rate which is 4.5 per cent. Europe and UK money markets are showing similar strains.

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