Posted Sep 12, 2012 by Martin Armstrong
Gold has taken a pause, but it remains above the key support at 1720. Volatility will start to rise again next week 9/17 and October is a Directional Change. The resistance is still at 17600 followed by Monthly Bullish Reversals that we may yet rise to test. There is still nothing to indicate that the uptrend will begin just yet. For that we need the non-hard asset investors to start to consider shifting that they should at least have some gold on the side. The Draconian increases in taxes on a global scale and the witch hunts that are developing searching for cash will eventually cause this shift toward gold to increase.
Bradley Birkenfeld was released from prison and he collected $104 million bonus for providing the info about Americans with accounts at UBS in Switzerland. He may have been involved in the tax-dodging case since 2009, but with his cooperation, the US government got $780 million in fines, penalties, interest and restitution out of UBS. It has been actions such as this that are causing the world economy to implode sharply eliminating the ability of Americans to even do business overseas forget have secret accounts to hide money.
As long as gold holds above 1720, then we may see one more new high with a sharp increase in volatility next week.