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By Goldrunner

Our work with Gold is based on a “Model” off the late 70’s Gold Bull that has been replicating nicely since we started the Fractal Work with Gold back in 2002 and 2003. Short-term volatile moves in Gold, as we have seen over the past weeks, do not affect our projections based on the model, leaving the expectation of a move in Gold up to $3,000 into mid-year based intact as outline in our previous article entitled Gold Tsunami: on the Cusp of $3000+?

This is no different than our projection calling for Gold going to $1860 to $1920 back in April in an article entitled Goldrunner: Gold on track to Reach $1860 to $1920 by Mid-year.  Many thought Gold’s run was finished, but then Gold shot up to tag our $1920 price target on the nose....

Could platinum be the precious metal to back in 2012? Prices have plunged recently and it is now cheaper than gold. Indeed, the platinum spot price has slumped by 26pc since its high in August and it briefly fell below $1,500 a troy ounce last week. “For the very first time, a troy ounce of gold now costs over $200 more than a troy ounce of platinum,” Commerzbank analysts led by Carsten Fritsch, said.

“The price difference between gold and platinum.....

Back in August with Gold running to parabolic wave 3 sentiment induced highs, I warned of a major top and multi-month correction.  We all know that the fundamentals for the shiny metal are stronger than ever, but you must keep in mind that the market prices all that in well l in advance.  Coupled with excessively bullish sentiment that was capped off by a USA Today cover with Gold on it, it was easy to see a major sentiment correction and therefore price decline was at hand.

If we fast forward a few months from my then blasphemous call for a top and multi month consolidation, we can see that Gold has ....

Gold Forecaster has for years now pointed to gold’s coming monetary role as collateral. We have never believed that a return to the Gold Standard was feasible in the form it was used in last century. We have never believed it would return as day-to-day money. We have always seen its return tied into its use on a global basis, most likely between governments, as we saw under the Bretton Woods system after the Second World War. We have always pointed to a time when it would return to a key monetary position in the global financial system.

Its use requires the skill to offer it as a ....

Ever since the eurozone bond markets first started to get the jitters, hedge fund managers have been whispering that gold could play a part in resolving the crisis. Until recently, this discussion has mainly been the preserve of gold market conspiracy theorists and backbench German politicians. But now the use of gold to fund a eurozone bail-out is coming closer to reality...

Central banks made their largest purchases of gold in decades in the third quarter, as a sharp drop in prices in September accelerated the shift to bullion as a means of diversification. The scale of the buying, at 148.4 tonnes on a net basis, was far bigger than previously disclosed, surprising some traders. The data were published in a quarterly report by the World Gold Council, a lobby group for the gold industry, on Thursday.

The WGC declined to identify of the central banks behind the majority of the buying citing “confidentiality restrictions”, saying only that....

Commentary: Europe’s choices: Chaotic breakup or mass inflation

LONDON (MarketWatch) — As the euro struggles from crisis to crisis, it isn’t hard to identify the losers.

Peripheral country bonds have been hammered. Equities have struggled to make any progress all year. The main euro-zone banks have had to make huge write-downs on their holdings of Greek debt and have seen their shares collapse in value as a result. The euro itself has started to fall in value against other currencies, and almost certainly has a lot further to go.

But where are the winners? After all, all that money has to go somewhere....

Gold is seen by most as a safe-haven. If equity markets are in turmoil, “buy gold,” we always hear. Gold bulls are currently predicting gold to move over $2000 an ounce by year end. Some of the gold bull’s thesis goes something like this:

Italy, Greece, and eventually Spain will cause a European end-game scenario. The default of bigger European countries will cause the European Central Bank to force money into the system in the form of a massive bailout, mainly being a dovish monetary policy.

The fears of contagion will spread throughout the continent and harm the economic outlook globally, including much harm to the United States. As the crisis unfolds, investors will flock more to gold than the U.S. dollar, as the United States will be in a similar mess. (This is a quick thesis.)

However ....

Physical gold will outsell ETFs by 500 per cent this year, Standard Bank’s Walter de Wet told the 8th Dubai City of Gold Conference today. Two years ago the position was completely reversed with physical gold sales running at only 20 per cent of ETFs.

‘It’s a complete flip from ETFs to physical gold,’ he said. ‘And it seems to reflect people’s lack of trust in financial systems and the shift in investment flows towards Asia and the Middle East’....

Chinese gold imports from Hong Kong, a proxy for the country’s overall overseas buying, leapt to a record high in September, when monthly purchases matched almost half that for the whole of 2010.

The buying spree follows a sharp drop in the price of the precious metal. After hitting a nominal all-time high of $1,920.30 a troy ounce in September, gold fell to a three-month low of $1,534 an ounce later in the month. Chinese investors snapped up the metal as prices fell....