Forex Comments

On my all important P and F 3 X 1% Spot Gold Chart, today's trading did NOT reverse Gold, and, therefore, Gold is still BULLISH in the short term, despite the blatantly FALSE RUMORS of an impending Gold Sale by the IMF (Rick Santelli, on CNBC this morning, said "Gold is down because of impending IMF Gold Sales"). Moreover, below is an important excerpt from reuters.com today which is very bullish for Gold, and points out that even if the U. S. Congress does vote in favor of GIVING AWAY 67 tons of U. S. Gold in the politically impossible environment that now exists for such a vote without obtaining any significant increase in demand for U. S. Exporters, it is highly likely that the 400 ton sale of IMF Gold would be done within the confines of limiting all government sales to 500 tons per year, which excerpt is as follows:

'Third gold sales pact to plant flag of support
4 hours 12 mins ago

Veronica Brown and Jan Harvey - Analysis Print Story. Gold bugs are tantalised by the prospect of a third European central bank pact to limit sales of the precious metal, with the International Monetary Fund seen figuring heavily in a move that should underpin the investment case for bullion. '

In addition, today within the last hour, it was revealed that Mexico Silver production decline a huge 59.1% in the latest month because of the prolonged strike at the largest refinery of Silver in the world!! The mining company in Mexico it stubbornly limiting their pay raise offer to a niggardly 6.6%.

Therefore, look for Gold and Silver to make huge moves to the upside over the near term, intermediate term and long term, as there are plenty of bullish events on the horizon, some of which are as follows: (1) NATO has expelled Russian Diplomats because of their vehement protest of the impending NATO war games being conducted in Georgia starting on May 6, 2009 (2) North Korea is thretening the U.N. and U.S with a test launch of their ICBM if the U.N. fails to retract their recent tirade and punitive measures taken against North Korea (3) Stock Market equity prices are going to be testing DJIA 6,500 as per the long-term-rounding-top bearish formation it is now making, thus freeing up a lot of investment capital for REINVESTMENT in SAFE-HAVEN Gold and Silver (4) Bank Stress Tests results will be released next week, forcing more liquidity to be injected into the banking system, thereby cheapening the U. S. Dollar, and forcing DXY to come down to test the crucial 83.75 level, which when failing will allow completion of the second leg at DXY = 76.0 (5) etc., etc., etc.