Pento: Gold will hit $1200 by the end of the year, mentions ISM prices paid component surge, China PMI, real interest rates plummeting, commodities in CRB index rising which is 40% CPI.
Santelli: Next big move in gold will be a sell off, sees recent gold move as a technical break out, short covering, 3 day charts on dollar, gold and bonds tell a different story, dollar did nothing.
There are definitely input cost pressures globally which I'll touch on next but Rick Santelli makes an interesting point about intermarket relationships. I provided a performance comparison between Gold, the CRB Index (commodities), US Dollar and the 30 Year Treasury Bond from August 13th. Over that time period CRB lost 6.63%, US Dollar lost 0.31%, 30 Year Treasuries gained 1.82% and Gold gained 4.14%. Interesting.... *Updated chart, didn't include gold performance.