Gold looks technically superb, and the fundamentals look even better.
Trump is beginning to pressure Japan to push the dollar lower against the yen.
It’s likely a question of when, not if, Abe orders his central bank to kill the Japanese QE program. When that happens, the dollar could stage a dramatic collapse against the yen.
If the dollar collapses against the yen, it will collapse in an even bigger way against gold.
A rate hike next week should quickly produce “Rate Hike Rally #3” for gold stocks.
Gold stocks recently reached what I call a “Need to Bleed” price area.
Here’s the Good News:
An Inflationary FIRESTORM Is Coming:
Silver is beginning to act with less volatility, and more like a slightly “jacked” version of gold!
On rallies, silver is outperforming gold against the dollar, but not excessively so. Modest out-performance by silver against gold tends to occur during long term up-trends. Wild out-performance tends to occur when the precious metal sector is ending a big uptrend.
The current action in the silver market is ideal for investors…
Will President Trump order Janet Yellen to engage in outright money printing to devalue the dollar?
I think he’ll do it, and here’s why:
Donald “The Golden Trumpster” Trump may or may not make debt-soaked America great (he likely won’t), but he’s almost certainly going to make gold ownership a great investment during his presidency.
I will dare to suggest it’s time for the Western gold community to throw a bit of caution to the wind, and sit back and enjoy this gold price rally. This is a rally that seems poised to accelerate in quite a shocking way…
This type of price action is indicative of a rally that may be in the early stages, rather than near an end…
This is very positive for precious metals:
For the funds, this is a very dangerous situation, and one that could produce a violent move higher in the gold price at a time when that seems impossible.
Gold bugs should pay attention to current commercial trader liquidity flows, which suggest that a major gold price rally is either imminent, or already underway!
Stewart Thomson Explains Why Gold May Be In the First Stage of a SIGNIFICANT Rally:
Gold has a cyclical tendency to decline ahead of a rate hike, and rally after it is announced.
This time, the US election may delay the rally, but create one that is bigger and more sustained than the rally of 2016. Here’s why:
Gold stocks and silver continue to exhibit substantial strength in the face of the decline in the price of gold.
Is that strength hinting that a substantial rally will follow a Fed rate hike?
Interest rates rose throughout the 1970s and inflation and gold soared as that happened.
Last year’s rate hike was followed by a collapse in the dollar against both the yen and gold.
When vote counts began to show that Donald “The Golden Trumpster” Trump would win the US election, gold surged well into my key sell zone at $1320, reaching about $1337.
The gold price was flirting with an upside breakout from a key monthly chart downtrend line.
In my professional opinion, gold would have achieved the trend line breakout, but only if the Indian government had not suddenly showed up on the scene that same night… with a horrific announcement that overwhelmed the US election news.
Professional investors buy weakness, sell strength, and do so very aggressively…
Western gold community investors need to have a wee bit of patience.
Gold is no longer vulnerable. It has entered a nice buying area.
The $1225 – $1200 price zone is both technically and fundamentally important.
A US government bond market panic is becoming a potential event that serious money managers will need to think about very carefully.
I would suggest they start thinking about it… NOW.
The world gold community should probably fasten their seat belts now, and get ready for an end of the year upside ride!
For gold investors, some days are more awesome than others, and I’ll boldly suggest that today is one of those days. Here’s why:
The US election is now only about two weeks away.
The winner of this election is likely to be… gold.