The upwards path of the gold price looks to be an almost certainty, inasmuch as anything is certain in this world, driven by open ended QE commitments around the world.
by Ross Norman:
LONDON (SHARPS PIXLEY) -
"2012, like 204 and 2008, was ALWAYS going to be a relatively modest year for gold and silver. Modest, that is, within the context of a run rate of a 17% year-on-year increase (compounded) that we have seen for 12 years. Up until "QE Infinity" gold had scored a 4% gain YTD and today it stands at just 9%.
"The thing that links 2012 with 2004 and 2008 is of course that these are US election years and not untypically the incumbent is wont to remind us how well the US is doing - by extension the dollar is firmer and gold weaker than it might have been.
"With the US balance sheet already at a staggering negative $3.0 trillion we should expect this to rise by $0.5 trillion a year until the economy improves and it has been suggested, unemployment falls to 5.5%. This is expected to take, at best 5 to 6 years. In short, expect the Fed balance sheet which has already grown nearly fourfold from pre-crisis levels is set to double again. ..."