SD Outlook: One of the cartel’s favorite times to smash price is this week, and the cartel’s got a second, brand-new excuse to smash even more…
They love it.
Like Pavlov’s dog.
No disrespect to the dog.
Currently, there are two days.
Two days the cartel love’s smashing.
FOMC Day & BLS Employment Report day.
Wednesday at 2:00 p.m. EST, the Fed’s in the spotlight.
It’s the March FOMC, and Powell will hold a press conference.
So not only does the cartel have one of its favorite times for smashing metal.
But there’s an entirely new excuse this week to really smash gold & silver with extra hate:
Apparently, the Fed is coming up with a brand new type of reporting: FOMC Forecasts.
The cartel, however, better be careful for what it wishes for with this new excuse.
A Fed forecast that is extra bullish could be negative for the stock market.
A bullish forecast brings the Fed’s “pause” of rate hikes into question.
Bullishness also brings the balance sheet “pause” into question.
So, in my opinion, the forecast will be a Goldilocks forecast.
Such as a strong economy & markets, but not too strong.
The Fed does, after all, have to justify all of ts frauds.
Which is basically anything the Fed does, at all.
A Goldilocks forecast is “worst case” for gold.
Because it implies more of the same grind.
Still, it’s a brand-spanking new excuse!
So it will be double-whammy week.
Of the Fed’s FOMC and forecast.
So what can we do about it?
Keep our eyes on target.
To buy any smash-dip.
Smart money does.
They buy dips.
CME Group is showing zero probability of a rate hike:
Aside from the “pause”, the only other interest rate probability right now is a rate cut!
Theoretically, a pause is good for gold because it implies loose monetary policy.
Loose money policy is inflationary, and gold is a hedge against inflation.
A rate cut would be good for gold, but I don’t see a rate cut this week.
In order for the Fed to cut rates, there has to be some sort of crisis.
The Fed claims a strong economy, so we should get a rate hike.
In the Fed’s world, a strong economy is inflationary at its core.
So the Fed would be hiking rates to get in-front of inflation.
In a strong economy, an interest rate cut is not “justified”.
Granted, the Fed doesn’t do anything that’s justified.
What they do is destroy the value of the dollar.
Which’ll happen until the Fed is not needed.
And we’re left with a dead fiat currency.
As in the dollar becomes worthless.
People with dollars will lose.
It’s just the way it goes.
Silver investors win.
Gold investors too.
I plan on winning.
The gold-to-silver looks to be finally topping:
If 87.50 holds as the high print, we will have a lower-high on the chart, which is something we need to see on the chart so that the technicals become bullish for silver.
That said, I think they smash silver below last week’s low:
That would put silver in the upper $14s, a price which would be an awesome entry.
Gold’s support at $1300 is turning out to be pretty stout:
If they give us our double-excuse-whammy smashing (FOMC Day + the new Fed Forecast), I think we could see $1280 gold.
That said, I’m assuming the cartel lays-it into us against our will this week, I mean, they’re literally drooling over the chance to use their brand new excuse, but if the Fed comes out uber dovish (which I don’t think they will) on Wednesday, then we could see the start of the rally this week, but no matter what happens, as in a smashing or the start of the rally, I’m not looking for gold & silver to stay down, or even to stay where they are right now, for much longer, and I think by the end of the week, or by next week at the latest, we should have some stuff to get excited about again.
In fact, palladium may be a taste of things to come:
We’ve hit another record high just this morning.
Platinum’s golden cross, however, could happen with a big, fat candle right on top of it:
Still, the technicals are becoming very supportive of a very nice run.
The real shocker this week could be crude oil:
The chart is screaming “break-out” to me.
If so, we could see copper break-out above $3.00 as well:
Between the bullish chart set-up and a possible resumption in the fall of the dollar, copper bulls are in the same boat as gold & silver investors right now.
Speaking of the US Dollar:
Three higher-lows but only two higher-highs does not fully establish a bull trend, but rather, in my opinion, the dollar chart is shaping-up to really catch dollar bulls off-guard with the resumption of the dollar’s decline.
I think yield on the 10-Year Note continues to decline:
First of all, we know that yield has another run lower once the stock market resumes its decline, but, perhaps more importantly, is the fact that we’re on the cusp of Spring and Summer home-buying season, and the government and the Fed would certainly love to see yields as low as convincingly possible in order to sucker in the last few remaining homebuyers, you know, just before they bring max pain to America.
Speaking of suckering-in the last remaining suckers:
Anybody who thinks Dow 50,000 is both a good thing, and coming soon, after what has already been 10 years of a stock market boom, quite possibly deserves what they have coming to them.
None of this suckering-in of the remaining suckers in real estate and the stock market could happen without max complacency:
We’re about as maxed-out as we can get on complacency, too.
Bottom line as we go through the Fed’s March, FOMC week?
Cartel has one of its favorite days to smash gold & silver.
And now, one of their favorite days is a two-for-one.
The new Fed data release is a brand new excuse.
Any smashing this week should be short-lived.
Any smashing this week’s an opportunity.
I’ve moved my selector switch to “fire”.
And I am ready to pull the trigger.
To buy cartel’s flash-sale dip.
I thank them in advance.
For such a great value.
A strong US dollar.
With cheap gold.
And silver too.
– Half Dollar
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.