Tom O'Brien, TFNN.com and Editor of the Gold Report, gives us Outlook on Gold

You never -- you told us that gold was up about ten dollars an ounce of 1616. Yet developed 1260. That it's climbing. Let's do this and informal survey of our audience and what we wanna know is what do you think for the next. Stock for gold does is -- 18100 dollars an ounce or is it 15100 dollars an -- right now gold trading at 1669. And -- Where do you think it's headed is at 18100 or is it 15100. Text your answer to 68680 we'd love to know your perspective on gold 68680 is our text number. Tom O'Brien from the gold report is our guest Tom welcome to the show. -- -- -- Last do the same question a masking our audience what he -- next on 18100 bucks announced her 15100 bucks an ounce for gold. I'm gonna take that 15100. Announce. You car with -- its impact in the price of gold why would I said. Pretty it's pretty well video -- -- -- equipment taken fifteen yeah okay that's what we have is this. This morning we have gold and fourteen bucks a -- right now at that that 1670 area. The dollar index is down 46 sticks and and the direct correlation Barry is flat out. When the dollar goes down. Gold want to go up market want to go. The dollar index itself was pulling back right into a breakout point to me it's consolidating for higher price. Gold itself. You know had he had the acceleration a beautiful acceleration in 19100 from that point on it's been in a downtrend and it's it's the severe downturn and I'm and it's selling pressure you know at most did did you would have to deal with Centrino John Paulson sure. He's the largest owner of the GO LD. It's -- it's had a problem that you know the last couple years -- made a fortune the last couple has been a problem. He is a big seller of gold he you know that the top. Holders in the GOP. The top 9%. -- dollars right now the last thirteen F filings which came out the assailant Seles so he still owns seventeen million shares. That's problematic -- they describe accurately just you want to get rid of he is exactly and it's just in factually it's showing that he has been moved they moved out more than half his position. So we'll get the next filing what about another it's 35 days to see what he's done and the last night. Let me handicap be a little bit that's what if you have a situation where. You have military conflict in the Middle East then what -- -- would you say to meet any yet. He had a military action in the Middle East before Memorial Day what happens to the price of gold. You know it evident fact snapped -- angled. I don't expect it would hold will -- remember the first Iraq War we had a fast snap up an oil and then oil crash. You know it. What what gold has done you know people say that. It's safe investment there's no such thing as a safe investment because -- Michael that -- that's. It's all the liquidity so whatever whatever way I look at it is that okay. The gold kicked out that yes we're going to be in a financial debacle. But you know what -- -- -- you know so so now like I -- gold -- consolidation for quite awhile you know since 15100. And they ended outside -- had been golden goodbye again that's that's my take on says. You know if we keep that moving out let's say year year and a half well. It'll installations decreed bit and even to consider three or 4% while it's not gonna be a big deal two years from now they gold that 2000 between 200. I'm not the camp that you know you're talking three or 4000 -- and has done that can't -- just don't see it. Okay what about the the old adage where gold was correlated to the price of oil does that still. Exists today is are the two tied at the hip like they've been for couple hundred years. I don't see it now -- because let it happen. Is that oil is basically on its own little deal right now and it seems that. You know even with the price of natural gas amended that does not let them to stop oil. What does happen -- this is that commodities in general including a little bit of copper and all that. As a dollar stayed low -- today the dolls well every commodities higher up so that the correlation. For the listeners who is if they can wrap their head right around. The dollar index and the dollar. That's I was a telling sign of where these commodities are gonna go when the dollar goes higher commodity go lower immediately because all commodities. Priced in US dollars so -- India which has the second largest you know borrowed gold. When they buy gold and India though fifty billion US -- first up to by the -- you know so it's counter intuitive and it put -- behind adults. Tom O'Brien is our guest he's the editor of the gold -- party joins us today Tom what impact if any will the presidential elections here in the United States have on the price of gold. If film. The when the president -- election comes it's all going to be about. Are we gonna continue to run large deficits collided deficit that we have. The political will continue to go higher because what ends up happening. Is that that means more to all the -- to get printed. And you know but I I think it's going to be a slow process even you know that no matter who gets elected if the deficit continues -- gold will continue higher than it is better to be -- slow. Right verses what has happened in the last ten years. -- to fed presidents are and whoever left the door open does -- yelling yesterday said hey we might do more quantitative easing. What last year when they they did their cue the two. The price of gold went up I think 600 bucks announce if if there's another round of quantitative easing say the middle of June late June what does that do to the personal. It would it would sensitive moment. Yeah it that it would send that the stock market to the -- and no doubt about the quantitative easing. Once that's in the -- That pushes everything up you know and that would amazing you know the gold likes to go to -- market you know I mean is it does no doubt for a gold goes to ride back and so it's not. So that is counter -- to the markets. It's actually. Aren't all these reasons it's been stronger the broad market but they I'll go up like to take every -- Now Tommy told to say you think 15100 as the next stop between fifteen and 18100 you've got 15100 was the next stop for the rest of gold. Where is it an eighteen months -- does it really matter -- by now where do you see the price of gold eighteen months from today. Eighteen months yeah I can see it about 22 -- Yeah and that's going to be at the -- a big deal though because that's you know our prices are going to be higher but you know. It's it's not the end of the world. All right. Tom O'Brien appreciate your time thanks very much very -- whatever -- that's Tom O'Brien editor of the gold report joining us today on the financial exchange.