Although the spot gold price this morning has given up some of last week’s gains and is now back down under $1000 it looks set for a rebound as investors fear the world’s financial system is now at breaking point and worry about currency devaluation.   Once the $1000 barrier is breached there are no technical indicators – last November Citigroup predicted the price of gold could even reach $2000.

If gold is really going to become the next asset bubble the consequences for stock markets are truly dire.