GOLD UP $16

Gold made a big jump this morning rising $15.60 in early trading. Silver is up $.20. The dollar is down 11 basis points at 76.85 and oil is up $.86 at $71.55 a barrel.

The Consumer Price Index data showed consumer prices rising 0.4% or 4.8% annualized. That is a factor weakening the dollar and further supporting the gold market. In addition, gold is likely influenced by the FOMC meeting, which ends later today. Analysts see a greater need for bank short-term funding. Therefore, the FOMC is likely to repeat its intention to keep interest rates at exceptionally low levels for an extended period of time, according to reports on the Dow Jones Wire Service.

It is also significant to note that inflation over the past 12 months has increased 1.8%. It's the first yearly increase since February of this year. Moreover, the core CPI is also up 1.7% over the past 12 months. Dow Jones also reported that thanks to rising imports the U.S. current account deficit, which is a broad measure of international trade and investment activity, widened to $108 billion in the third quarter. China is a big part of that deficit. One would think they would have a huge amount of money that they needed to invest in treasuries. However, since September they have not increased their treasury holdings at all. One has to wonder what are they putting that money into? Probably some combination of hard assets including gold. While that data isn't making headline news, it is possible that the realization that China is not adding to its treasury holdings, even though it is accumulating more dollars, could be a significant factor in driving gold prices higher. In addition, Japan reduced its treasury holdings. An additional factor is that the euro is stronger this morning after some positive economic data from that region. Nevertheless, the potential for sovereign debt defaults among EU members could be a serious problem for Europe going forward. It could threaten to capsize the European Union. Greece, Portugal, Spain, Italy, Ireland, UK and a host of other countries including Mexico and Argentina are all in danger of being unable to meet their sovereign obligations. If any of these countries fails to meet its obligations it would have a serious impact on the value ofthe euro. In addition, the grading services have warned both the U.S. and the UK that if they do not get their spending under control within the next two years that they could be subject to rating downgrades also. Again, this would be bullish for gold.

With gold bouncing back and trading as high as $1,140 on the key futures contract, it looks as though there is a real possibility that the corrective process may be ending. Those who have not acquired precious metal assets should call Goldline at 1-877-341-2646 and take advantage of this opportunity to acquire metals at these favorable price levels. Some may wish to use Goldline's Price Guarantee Program and should ask about the details. Call Goldline now at 1-877-341-2646. In addition, Goldline is offering a free information package that has an excellent group of articles that would help you to understand the markets and factors driving the markets. These articles include a special 2010 forecast from BofA/Merrill Lynch. This report in and of itself is a great reason to call Goldline for the free information package. The information package also includes a free copy of the new American Advisor Newsletter, which is a $25 value, for free. That newsletter has an article written by Philip Klapwijk, who is the Chairman of GFMS. That company charges between $10,000 and $20,000 a year for its investment advisory services. You will read their opinions for free in the newsletter. Call Goldline now at 1-877-341-2646.

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