Greetings!, It only took seven months. In the early morning hours the rescue package containing the €130 billion loan was secured so that Greece can avoid bankruptcy on March 20. This action put pressure on the U.S. dollar, and along with a major uptick in crude oil prices, gave gold bulls all the ammunition they needed to take prices higher. As I said yesterday, the fact that a bailout package has been secured is a major, major first step. However, it still remains to be seen how Greece will be able to keep in strict accordance with the terms of the bailout given their current GDP and current spending levels. Many analysts feel that this bailout could unravel at any point. It seems contradictory, but the precious metals markets are reacting as bullishly with the bailout package in place as they did when the crisis was still unresolved. In both cases we have seen this type of fundamental news move the precious metals markets strongly to the upside. Traders, this saga is far from over, but another chapter in the E.U. crisis book is, at least for today, concluded. As always wishing you good trading, Executive Producer |
