Gold for Year End 2012

GCNYNF-Y

 

The Fibonacci Resistance from the 1970 low stands at 17633 for the close of 2012. The tip of the channel constructed from the 1970-1999 lows with a parallel off the 1980 high rests at 11100 for 2013. That is the worst case scenario for support. System closing support for 2012 lies at 1570. A closing above 1570 is neutral. A closing below 1570 will open the door to test the top of the channel before resuming the uptrend. There will be NO HYPERINFLATION. These governments are creating a Draconian conclusion and will not simply print for the bondholders will have nothing to do with them under that scenario. This is STAGFLATION, rising costs due to tax increases with declining economic growth.