The US passed the ‘fiscal cliff’ by making an agreement to raise taxes over 600 bn and cut spending $20 bn. Wow.
In two months the US has to raise the debt limit. The Limit is already reached but the Treasury is using side measures to cover the deficit till then. Supposedly they can make a new deal.
Given the fact that the US is the only major economy with any solvency left, even with their immediate national debt at $16 trillion, and a POTUS(president of the united states) who is determined to borrow as much as possible in is his remaining time (guy has no real knowledge of much of anything really) …that
The Gold price will ratchet up inexorably this year, I would be super surprised if it did not easily break $2000 a month or two after they automatically raise the debt limit for the US in two months. In fact I think the gold price will break and hold $2000 and then immediately test $2500 for a time, before being beat back to the new low baseline, $2000, and during 2013, it will fluctuate between $2000 and let’s be a bit more generous $3000. (Really my estimate is $2000 to $2500).
But my more generous estimate will be probable. The US fiscal situation is out of control. As I stated it’s the only major economy left with some credit.
Seriously. China. Laugh. They are fake, and have a banking system far worse than US.
Europe. Laugh. Need I say more?
Japan, laugh, they are on the verge of a bond crisis and using extraordinary measures now to fund their huge deficits, and have a trade collapse and are now even on the verge of saber rattling with China over those small insignificant islands.
And THEN, we talk the war potential in Asia over this and also the Mid-East. It’s an easy call to say that gold is headed really to more like double its present numbers. Over $3000.
It is tough to catch the currency fluctuation and predict the gold price in INR but probable range will be Rs.35000/10gms to Rs.45000/10gms on higher side Rs.65000/10gms.
