Gold Rallies as Money Flees - By Aaron Task | Daily Ticker

Gold Rallies as Money Flees “Leveraged Financial System,” Dempsey Says

Mon, Aug 22, 2011, 9:36 PM EDT - U.S. Markets closed

By Aaron Task | Daily Ticker 

Gold climbed further into record territory Monday, trading within earshot of $1900 per ounce.

Edward Dempsey, chief investor officer at Pension Partners, has been and remains bullish on gold. "Technically, gold is not showing any signs of slowing down," he says. "It's not at the moment exhibiting any signs of weakness or slowing down."

What's driving gold now is "money running from leveraged financial system," Dempsey says, echoing the views of other gold bulls like Porter Stansberry. (See: 40 Years Later: Should America Go Back to the Gold Standard?)

The flight from the financial system resumed Monday as banks stocks stumbled into the close in Europe while weakness in Bank of America and JP Morgan restrained the Dow's rebound effort.

In the near-term, Dempsey says gold may get a lift as bullion banks seek to meet Venezuelan President Hugo Chavez's recent decision to recall his country's gold reserves. "My guess is they don't actually have the gold — it's been lent out and [banks] are going to have to scramble to get this gold," he says. "The question is: 'At what price is it going to take to get it back?'"

http://finance.yahoo.com/blogs/daily-ticker/gold-rallies-money-flees-leveraged-financial-system-dempsey-182933547.html;_ylt=AryrF8LMGzPB_cPd_3oZ4eG7YWsA;_ylu=X3oDMTFjYzdsbXBtBHBvcwM0BHNlYwNGUERhaWx5VGlja2VyQmxvZwRzbGsDZ29sZHJhbGxpZXNh

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