Greek Deal, Inflation Risks May Become Catalysts For Precious Metals

By David Alton Clark: The Gist Gold prices held above 1,670 on Friday after a rallying for the past seven sessions to five month highs. In July, European Central Bank President Mario Draghi stated the ECB was prepared to do whatever it takes to preserve the euro, advancing the EU currency versus the dollar.

By David Alton Clark:In October 2008 the precious metal plummeted 18% and subsequently rebounded 23% over the next two months. I accurately predicted this move in an article I wrote on August 24th. This is the eleventh 10% correction for gold since 2003. Gold has always bounced back and soared higher each time. Gold has been up 10 out of the last 10 years.

By David Alton Clark:After a recent correction it appears gold's Bull Run continues fueled by recent news that China's economy may not be headed for a hard landing. Gold rose to slightly above $1900 in the last quarter only to come crashing back down to just below $1600. Now it has broken through its 200 day moving average and I posit will hit at least $2000 in 2012. This is the eleventh 10% correction for gold since 2003. Gold has always bounced back and soared higher each time.

"The euro crisis is certainly not over yet," is how the Bundesbank's Jens Weidmann begins this intriguingly honest interview, adding that, resolution "will take some time." Perhaps his most telling statement comes early on when he explains that "believing that everything is okay now simply because the situation on the financial markets has eased is an illusion and does not help matters," as imbalances remain unresolved.

Gold prices eased towards $1,580 an ounce on Wednesday as traders took to the sidelines ahead of the release later in the day of minutes from the Federal Reserve’s last policy meeting. Softer investor confidence in the metal after a fresh outflow from the world’s largest gold exchange-traded fund and a further forecast cut from Goldman Sachs weighed on prices, though a retreat in the dollar lent some support.

By David Alton Clark: The Gist These precious metal stocks were originally on my radar in August. European Central Bank President Mario Draghi stated in July the ECB was prepared to do whatever it takes to preserve the Euro. This advanced the EU currency versus the dollar and created a reflationary trend which sparked a rally in precious metals.

Market Blog submits: By David BermanUBS economist Larry Hatheway is cutting his recommendation on precious metals from “overweight” to “neutral,” thanks to receding economic risks and a recovering global economy.