Great 48 hours for precious metal bulls. In a classic case of sell the rumour, buy the fact, gold prices were quite soft earlier in the week, as talk of a debt ceiling deal saw prices push down toward the USD $1250 range. Once the debt deal was announced though, gold reversed sharply,back above USD $1300 even as Goldmans etc were calling it a 'slam dunk' sell. Regarding gold, and true state of global economy, best quote of the weekend came from Matthew Mclennan in his interview in the AFR, in relation to how out of whack our markets are, when he stated; How can you expect to have real economic adjustment, and a proper allocation of scarce capital to its most productive purpose, when the price of the money has been faked? Full interview available here (VIEW LINK)
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