"With low interest rates and low inflation, downward pressure on the dollar is limited; and upward pressure on gold. Demand for gold is a bet on continued growth in government debt fueling rising inflation, but the alternative scenario of low growth and higher taxes is just as likely."
"The Market Vectors Gold Miners Index [GDX] completed a broadening wedge (continuation) pattern, offering a target of the 2008 high at $56 (the calculated target is $58*). My only concern is the bearish divergence on Twiggs Money Flow (13-week) which warns of a reversal. These signals are often early, but should not be ignored. Reversal below 50 would strengthen the warning."
