Gold, as we write is still sitting at around $1,660. We suspect that investors are waiting to see what Ben Bernanke has to say at Jackson Hole later today before they make their move.
If Bernanke makes some definite comments regarding monetary easing, then we will see the gold price move dramatically. The direction of the movement depends upon whether he hints at more or less easing in the immediate future.
We at barbarous relic do not know what he is going to say. To be honest, we don’t particularly care what he says. We are confident in our long-term assessment of the current financial situation and believe that, at some point in the not too distant future, gold is going to be worth a great deal more than it is currently. We therefore don’t know what will happen to the price of gold after Bernanke speaks, but we will react to any price movement, in line with the principles we espouse in this blog.