Take a look at what I believe is the greatest bull wedge chart pattern in the history of global markets.  If there was ever a realistic opportunity for investors to “chase price” in the gold market, I’ll dare to suggest…. it is now!

 

Submitted by Stewart Thomson:

1.      After surging towards $1300, gold is taking a well-deserved short term rest.  Can the rally continue?
2.      Geopolitics news has gotten most of the credit for this rally, but Indian dealers have been buying huge amounts of gold in preparation for the April 28 wedding season Akha Teej celebrations.
3.      Over the past two months, that’s where most of the demand has come from.  Western analysts and investors often forget that Indian buyers follow Western news very closely.  In fact, I would argue that India’s top gold traders are more in tune with gold-related news in the West than many Western analysts.
4.      For example, gold surged higher on the night Donald Trump was elected because Indians bought gold maniacally when they realized Trump was going to win.
5.      Their frenzied buying took gold to about $1340 that night.  It continued until the Modi government stunned the buyers with a cash notes call-in.
6.      The latest surge in Indian dealer buying appears to have peaked last week, but there are more key events that sit dead ahead in the Western news pipeline.
7.      That could mean there will be no more than a short and sweet pause in both Indian and bank FOREX trader demand for gold.
8.     Double-click to enlarge this fabulous “Uptrend of Champions” gold chart.
9.      After pausing in mid-February as Chinese New Year buying peaked, gold carved out a nice inverse H&S bull continuation pattern, with a neckline in the $1270 area.
10.     Indian dealer “thunder buying” blasted gold over the neckline and towards the $1300 round number resistance area.  It’s unknown whether gold will pull back to the $1260 – $1270 neckline area now.  If it does, I’m a happy buyer of more gold, silver, and related stocks!
11.     Gamblers can also buy now rather than waiting for the pullback.  It can be done with small size via call options and other gold gambling products.
12.     Double-click to enlarge what I believe is the greatest bull wedge chart pattern in the history of global markets.  If there was ever a realistic opportunity for investors to “chase price” in the gold market, I’ll dare to suggest…. it is now!
13.     Incredibly, Akha Teej wedding day is April 28, and the next US debt ceiling deadline is also April 28!  One powerful gold price driver is fading in importance, but only as another arrives!  For all practical intents and purposes, the US Treasury can probably fund operations using bookkeeping tricks to keep spending at the ceiling limit until the fall.
14.     Congress is on holiday and it’s unlikely they will do anything other than pass an “extraordinary funding measures” bill to allow the debt ceiling can to (yet again) be kicked down the road.
15.     Institutional money managers are becoming more nervous about the lack of any real action plan to reduce the ceiling, and that will continue to be supportive for gold.
16.     Also, first round voting in the French election begins on April 23, just five days from now, and Iranian elections are in mid-May.
17.  
The US dollar has finally arrived in my 107.50 target price area against the yen, hitting about 108.30  A rally in the “risk-on” dollar now though, is more likely to be accompanied by a US stock market rally than by a big decline in gold.

18.     Some gold stock enthusiasts are not aware that the GDXJ ETF is undergoing some portfolio rebalancing.  The fund has reached regulatory limits in the amounts of shares it can hold in some companies.  That’s causing some temporary selling in some well-known gold stocks, and buying in others.
19.     Investors need to ignore this short term noise.  In the big picture, gold and silver stocks are performing well.  Still, it will take more rate hikes to reverse US money velocity and generate the kind of inflation that causes these stocks to stage enormous outperformance against bullion.  That scenario is coming, but it’s a few years into the future.
20.     After bursting up from a beautiful symmetrical triangle pattern, silver is consolidating like a champion above the demand line of the pattern.
21.     Gamblers and long term investors can both profit nicely from the upside implications of this pattern.  Investors who own no silver now should use the current breakout and any pullback to make purchases.
22.     I always suggest owning physical bullion first, and then diversifying into other types of silver market investing once that has been accomplished.
23.     GDX has been pretty much unaffected by the GDXJ rebalancing, and is making a beeline towards the $25 – $26 area highs.
24.     I expect a breakout above that key price zone will be followed by a surge to $31 – $32 before there is a significant “price correction”.   The bottom line: India demand was strong on US election night.  It has been even stronger during the geopolitics-themed rally since mid-March.  I expect that as Diwali buying begins in the fall, Western gold community investors will see Indian gold demand reach even greater heights, and that should indirectly produce a significant increase in the value of most of mining shares!

Special Offer For Website Readers: Please send me an Email to [email protected]com and I’ll send you my free “Gold Stocks & Silver Stocks Tag Team!” report.  I highlight eight gold stocks and eight silver stocks are marching higher in the face of the GDXJ rebalancing, with key entry and launch pad numbers for investors!

Thanks! Cheers Stewart Thomson Graceland Updates

    • Total nonsense that the reason gold spiked after the election was because people in India were buying gold. All markets had their typical knee jerk reaction of a major news event. It was not only normal but predictable. Just like May’s decision in the UK to move the election up to June caused the pound to rise 250 pips against the dollar. Prices always revert back to the mean after the dust settles.

    • There is ONE very simple solution to defeating these bastards, a lot of people buy PM’s and relieve them of their physical (and subsequently their power)!

       

      Yes, they are Zionist scum but that’s how they can be defeated.

  1. Gold seems to have fended off 2 days worth of drive by egg fart dustings in a row. That is fine. Until they quadruple the attack tomorrow in the same illegal but unpunished method they’ve been doing it for years.

    As for all this Chartistry, you’re just as well off as looking at vintage Howard Stern show Fartistry.

    As far as I’m concerned is, the right move is to accumulate PMs when you can, and hope that anyone in the non physical realm ends up losing everything because they are part of the problem.

    Until then what do you want to do?

     

    • You have what seems like a good plan there CDL.  

       

       “Until then what do you want to do?”      I’ll take the Sherriff’s advice as well and play chess. lol. 

    • HECK, NO BETTER OFF TODAY, THAN OVER 8 YEARS AGO. IF I DIDN’T KNOW BETTER, I DO FIRMLY BELIEVE ALL THAT HAVE BOUGHT THE FIZZ HAVE BEEN SCREWED. THE ONLY PEOPLE THAT SLEEP SOUNDLY AT NIGHT ARE THE ONES WHO SELL THE FIZZ. ANOTHER THING, GOLD AND SILVER BREAKING OUT IS BULL SHIT. BREAKING DOWN IS THE TRUTH.

    • “Until then what do you want to do?”

      I want to do the good things in life:  thank the Lord for all the many blessings in my life; love my wife, kids, and grand kids; save a little to pass on to them to help them out as best I can; and go fishing, bowling, and shooting as often as possible.  😀

       

  2. When I used to watch US global sporting events on TV in the 1970s and 80s I couldn’t help but notice a placard that read “John 3:16” in shot behind the leaders taking tee shots at the Masters, US Open, PGA, etc, and at World Series games. Wouldn’t it be great should an angry or some angry PM investors copied that simple idea with Stop Comex Gold/Silver Fixing signs at those same events and more besides? It’s nigh on impossible to get that message across via the corporate media.

    • “Wouldn’t it be great should an angry or some angry PM investors copied that simple idea with Stop Comex Gold/Silver Fixing signs at those same events and more besides?”

      It would but those folks would need to understand that doing this is likely to result in their beat-down and drag-out.  Can’t have THE TRUTH so exposed on national TV like that, now, can we?  Shhhhh, sheeple at rest here.

       

    • @Folkmaster, what i started doing about twenty five years ago was………when ever i encountered someone who has deliberately screwed me in any business that i would conduct with them, being some one who does work for me, or as i do work for them, especially in the building trades as i had been. what i would do is, with extra pieces of drywall, or plywood. i put that person’s name on it, and how i was cheated, and how the cheat was done. and i planted that sign right in front of their house for all their own neighbors to see who and what is living next to them. i would do it in a fashion, that after everyone has gone to work and school for that day,so as the  sign can stay up all day to make sure every immediate neighbor gets to lay their eye’s on it.

  3. NOBODY CAN BUY ENUF FIZZ TO STOP THIS CRAP BUT THIS IS WHAT U DO INSTEAD,START A NATIONAL CAMPAIGN TO BOYCOTT A BIG FOOD COMPANY THEY R TIED TO,AND BUY FROM AN OVERSEAS COMPANY FOR MONTHS ON END!!! THEY WOULD HAVE TO CLOSE SOOOO MANY STORES EVERY WEEK BECAUSE OF BOYCOTT, DONT BUY USA UNTIL THEY CHANGE OR U SEND FOOD COMPANY BROKE, SOMEONE WITH A INTERNET CHANNEL WITH SHITLOADS OF FOLLOWERS CAN GET WORD OUT.

    • Let’s assume 200,000 mt of Au ever recorded/mined = approx. 6.4 billion OZ-troy.

       

      World pop = 7 billion in 2013

       

      Now lets assume that only 1 billion of the worlds population owned or could afford to buy gold. That’s only approx 6 troy OZ that would need to be accumulated, 1/2 billion people = approx. 12 troy OZ. Absolutely possible….

       

      But the world has been SOOOOO brain washed with fiat paper and the control it brings to their handlers……

  4. U DONT THINK THESE GUYS HAVE DARK MINES THAT PRODUCE OFF BOOKS FOR THE SYSTEM?? OF COURSE THEY DO BUT PPL HAVE BEEN LOADING UP FOR 16YEARS NOW AND NOTHING HAS HAPPENED, IVE GOT GOLD FOR AT LEAST 20 PPL AND OTHERS WOULD AV A LOT MORE, BY RAISING ETF FROM $1.5B TO $5BILLION IS A SIGN OF DESPERATION YES,AND I FIRMLY BELIEVE GOLD N SILVER WILL SPIKE HARD VERY SOON, I SAID LAST YEAR IT WOULD BY END OF APRIL BUT IT MAY BE A FEW MORE MONTHS NOW. I AM NOT ONE OF THE BRAINWASHED ONES BUT I DO BELIEVE THE MARKETS MIGHT FALL BAD NEXT WEEK!! 2 X $3BILLION DUMPS IN LAST MONTH IS A SIGN THAT IT IS NEAR, ALSO TRUMP IS AN UNPREDICTABLE IDIOT THAT COULD CRUSH THE MARKETS BY PLAYING WE R NUMBER #1 CRAP, MAYBE HE FINDS OUT THEIR NOT BUT ALL AMERICANS WOULD PREFER HE DIDNT TRY TO FIND OUT

  5. I don’t believe in massive hidden stock piles like that Karen Hudes nut job.

    I think they are up to 3 x $3B dumps now in the last week are they not, that shows the desperation. Because nothing says getting the best price like dumping $3B in 15 min! D’oh!

    Some guy on ZH made a good point that what use to take $1B to get a reaction now takes $3B….

    All of course PAPER futures contracts….

    HOPEFULLY (fingers crossed) people are really starting to wise up!

    • look i agree,but just like bush snr and the other oil elites buying all the worlds aquifers up,[think satellites they have that can spot these and new gold deposits easily] and the rest of the most valuable assets on earth!!! these ppl have technology we never heard of and by the ttime we do its toooo late to do jack shit!! believe me they have a ton of mines off books we never hear of, and the peoples water is now running out cause the new water barons are changing laws to suit themselves so its theirs for free if they can drill it, just ask boons picken or whatever the robbers name is. we r all [screwed over] in a very few short years cause the population is just plain [] stupid, off topic yes, but im [] angry at the stupid public not u

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