Upon the news from the UK, that in January inflation had unexpectedly increased to an annual 4% , gold took out the $1369 barrier, which had been so fiercely defended over the last week(s) by the cartel. I hope that this is the number that Jim Sinclair was referring to, when he said there was a number that could nullify Armstrong's statement about the closing price of gold in January and the consequences of that for the development of the gold cycles.

Inflation seems really coming through now and rate hikes can not any longer be avoided. We don't see only rate hikes in the emerging markets (India, China and Brasil), but also in the developed economies, Sweden being the latest today. the UK will certainly have to hike rates soon as well.

The US will do anything to avoid hiking interest rates, but the way they do it is really becoming Orwellian. They have fixed WTI crude at $85, while Brent is this morning already $19 higher at $104. This is untenable for the US and something will have to give. I am sure JP Morgan is involved in this scam as well and one can only speculate what will happen to them, when they have to let the price go.

DCFM