Rally in Precious Metals Is in Peril

Gold and other precious metals are on the recovery trail, with investors worldwide growing nervous about 2009 inflation pressures after the massive injection of capital by world governments fighting the credit crisis. The emerging rally is gathering momentum, but massive resistance lies overhead, near gold's historic high just above $1,000.

Of course, the yellow metal is also a fear hedge in these times of economic peril and instability. However, that emotional factor is likely to ease by the second half of next year as economists and analysts further quantify the levels of toxic debt worldwide as well as the impact of the colossal stimulus measures.

Gold Futures eSignal

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