Food Inflation From Worldwide Drought Could Push Gold Above $1900 An Ounce By Year End

I see possible food price inflation due to rising grain prices as yet another opportunity, and a reason, to own gold. Prior to this drought, deflation concerns had driven down the price of gold and the gold miners. Now, possible European stimulus, another likely round of QE3, and most notably, food price inflation are all significant tailwinds that will support the price of gold. In fact, gold closed above its 100 day MA and is forming a bullish engulfing chart pattern. I believe support relative to food cost inflation may be seen in the trading of December gold contracts at $1602 with possible topside resistance seen at $1645 and $1670 levels. A breakout above $1670 would be a massively bullish signal, and....READ MORE