The current battle in the gold market sits around the $900 level, a fairly steep retrenchment from the recent highs of $1,030 per ounce, writes David Galland of Casey Research. Some investors, their hopes dashed that $1,000 would be quickly and decisively overrun, are seeing disaster in this correction and dropping their gold investments as they run for cover. But current correction does not imply reversal in gold's fortunes. Global inflation & oil prices push gold's rise.
Monetary inflation causes price inflation, because an excess of money reduces the value of each monetary unit. But while almost everyone sees price inflation when it happens, few people notice the monetary inflation that causes it.
In the face of imminent US recession, fears of gold falling during recession are rife.
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