February 20, 2025 - (Gold Market Wire) - Gold continues to move higher, as the market stays firm, buoyed by a host of seemingly intractable problems.

The first of these, which is gripping the market, is the idea that the US Government may officially revalue Gold at a much higher rate than what it is carried on the books for - which is presently a mere $42.00 an ounce. The idea, expressed by US Treasury Secretary Bessent, that "We're going to monetize the asset side of the U.S. balance sheet for the American people", has seemingly put a floor under the market. But it should be stated, here, that this will hardly make a dent in balancing the balance sheet of the United States, which, if it were done, like it was in the 1970s, would entail a price many thousands of Dollars higher. Of course, Bessent's statement doesn't mention Gold by name, and his policy, logically, implies a host of other assets (like land) which also could be monetized - but it has turned the market around in the short run. Hopefully, the US still actually has some Gold to monetize, and Fort Knox isn't empty...or full of IOU's - but that would take an audit. Intimations that none other than Ron Paul be assigned the task have done little to hold prices down.

The first test of Gold's recent move will be the upper end of the channel - as we see in the chart.

Normally, this would be the place to shed length, and avoid adding to length. Wild Eyed Gambler's will have to decide their appetite for risk.

To this brief market outlook, we must also take into account the fact that nations like France, the UK, and the Baltic nations seem to be aching for war with Russia. These are nations who, like all European nations, are at ever increasing risk of Sovereign Debt Defaults in the near future. How they balance their balance sheet, if indeed there is even any intention to, will be a sight to behold. For them, it's far easier to start a war, default, and blame everything on Russia. That, of course, appears to be the template.

So - how does the market go down in such a scenario of intractable problems? - we ask.

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