Reports Of Gold’s Demise Greatly Exaggerated

To paraphrase Mark Twain, it appears that reports of gold’s demise (as seen in the mainstream financial media lately) have been greatly exaggerated – that is, if market action on Friday is any indication of where the metal’s price might go if central banks around the world once again crank up their printing presses, as now seems likely given the recent dismal economic and financial market data that came to a head with Friday’s disastrous U.S. labor market report.

The following stories are worth noting and possibly returning to later in the year should the upward move in the gold price continue:

• May 29th – Gold Prices: Death Cross Signals Bubble Has Popped Says Suttmeier – Yahoo! Finance
  
• May 30th – Gold Investors Rush for the Exits – Wall Street Journal
  
• May 30th – Gold may be ending its 11- year uptrend in 2012 – Commodity Online
  
• June 1st – How Much Gold Do Investors Need? Zero Should Suffice – Wall Street Journal
  

There are surely many more examples of these views on gold and these authors surely cringed on Friday when a very important change in the gold market may have occurred. After closing out its worst month in 12 years on Thursday with a six percent loss – its fourth straight monthly decline – spot gold surged more than 4 percent (or $66 an ounce) on Friday in its biggest one day rise in more than three years after traders concluded that the Federal Reserve is likely to launch another round of monetary easing sooner, rather than later, silver bullion and related shares posting similar advances.