Quote

Aden Forecast ". . .we could still possibly see a double C rise materialize."

ReportGold
Date12/16/2009
Loaded Date12/16/2009
TitleLow Rates Good for Markets
Other Source, Weekly Update
Quote"The Federal Reserve kept its interest rate near 0% today and repeated its pledge to keep rates exceptionally low for an extended period. This gave gold and commodities a boost while the stock market held firm, and so did the U.S. dollar.

Gold, silver and the other metals bounced up today. Gold is holding well above $1,100, while silver is bouncing up from its 15-week moving average. This shows strength and we could still possibly see a double C rise materialize. If gold (basis February) closes back above $1148, and stays there, it could then be on its way to form a second high. Keep an eye on $1148 and $1100 this week. Whichever way it breaks will tell the next trend direction. Silver is strong if it now stays above $17.25. A renewed rise would be back on track with a close above $18. Likewise for gold and silver shares. Gold shares are firm with the XAU index above 172. Keep your positions.

Even though short-term interest rates are being held low, long-term rates have continued moving higher. One important reason why may be that these sensitive rates see inflation coming. This week's huge 1.8% rise in November wholesale prices tends to support this, but it's still too soon to say and we need to see more. For now, watch the 30 year yield. It's getting close to 4.60% and if it rises and stays above that level it will confirm this upcoming inflation scenario."