Gold Watch - Boring, But Uptrend Still Very Much Intact

Nothing really to say on Gold, it remains in a long-term bull market but has gone flat over the last 6 months. Up and down without really going anywhere.

But as long as the US Dollar remains under pressure, of which there's a 90% chance, Gold bulls will surely be well rewarded over the coming years.

I'm still looking at a minimum target of $1,650 but as ever the timing is hard to get right.

Why do I believe the dollar will continue to be under pressure? Three main reasons:

1. The dollar is already in a long-term tenacious bear market and those are hard to reverse
2. The deep routed structural problems in the US economy, and
3. President Bush and Treasury Secretary Paulson continue to say and promote the 'US supports a strong dollar policy'. Quite frankly, this is starting to get embarrassing, especially for Paulson, an ex-senior partner of Goldman Sachs, who is clearly wincing every time he's forced to say it.

Summary

So as long as the Politicians continue to quote this rubbish you know the Dollar is odds on to go far lower.

Finally, don't forget inflation. Talking about it has become somewhat boring recently because everyone knows it's a problem and pretty much out of control.

Well, everyone apart from many of the useless Economists who continue to write and warn us that 'inflationary pressures are building'. Something that the general public realised about 18 months ago.

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