With Obama’s outrageous stimulus plans where the federal government is going to give out billions of dollars of handouts to the demand side of the economy, its no wonder gold is gaining ground while stocks have been falling. However, the question remains when is it time to buy? The answer is now. Gold has been consistently in an uptrend since October of last year. This is shown in the chart (click to enlarge) of a major gold ETF (GLD) [GLD: 90.57, -1.72 (-1.86%)] below. As you can see, gold is making a short short term pullback which signals a time to buy. With more talk of spending, including a world wide stimulus package, there is only further pressure on leading countries, currencies such as the U.S. dollar. These inflationary pressures may push gold to break the 2008 highs of around $1056.
