Gold?
I don't know why the Gold bugs get so hot and heavy about Gold. It makes so little sense to me it is absolutely insane. Yes gold can be a protection against reckless government spending but governments across the globe have been recklessly spending for centuries. Tell me did the Argentinians use Gold as a hedge against their own debasement of their currency? Or the Zimbobwane's? I doubt it.
I would say that there is indeed a perfect storm for Gold in certain areas. Like Canada or places where runaway inflation has sparked ridiculous bubbles but Not in all areas of the world where deflationary pressures remain the theme or worse stagflation.
The US Dollar is rising. Therefor Gold is collapsing. It is that simple. It broke out if its two year sideways movement to the upside just like the YEN did a couple of years ago. Now it is likely headed to 115.00 on the index or higher before slowing I suspect. That might take Gold to 800.00 and ounce or lower. Still want to buy the precious metal?
Well I am. If we do get a bounce it is likely to be between where we are right now or the 1066 area. If you hit 1039 get out. The stops have been likely cleared with the move down today and I always try to patiently provide you with the best mid to short term signals I can. I think this is one of them. The strong dollar will import deflation. It won't stop the stocks from racing higher on low volume or other markets but it will certainly kill the US economy. Raising interest rates? Hmmm...better think that one over again Mrs. Yellen. The two together (Dollar and Interest rates) rising will utterly destroy debt. It will bring on very hard times.
I wouldn't look for too much else my friends from gold until the Dollar cools somewhat or until they do the right thing and take interest rate rises off the table for good. If I am Yellen and company right now I am not liking what I am seeing in the Dollar. They think that the economy can handle it. I doubt that very much. Like a balloon that gets too full, it does not take it much to deflate. Corporate debt is at all time highs. Make no mistake my friends the present trend in gold is DOWN. You are buying a bounce here. That is it. You can see by the chart.
I would say that there is indeed a perfect storm for Gold in certain areas. Like Canada or places where runaway inflation has sparked ridiculous bubbles but Not in all areas of the world where deflationary pressures remain the theme or worse stagflation.
The US Dollar is rising. Therefor Gold is collapsing. It is that simple. It broke out if its two year sideways movement to the upside just like the YEN did a couple of years ago. Now it is likely headed to 115.00 on the index or higher before slowing I suspect. That might take Gold to 800.00 and ounce or lower. Still want to buy the precious metal?
Well I am. If we do get a bounce it is likely to be between where we are right now or the 1066 area. If you hit 1039 get out. The stops have been likely cleared with the move down today and I always try to patiently provide you with the best mid to short term signals I can. I think this is one of them. The strong dollar will import deflation. It won't stop the stocks from racing higher on low volume or other markets but it will certainly kill the US economy. Raising interest rates? Hmmm...better think that one over again Mrs. Yellen. The two together (Dollar and Interest rates) rising will utterly destroy debt. It will bring on very hard times.
I wouldn't look for too much else my friends from gold until the Dollar cools somewhat or until they do the right thing and take interest rate rises off the table for good. If I am Yellen and company right now I am not liking what I am seeing in the Dollar. They think that the economy can handle it. I doubt that very much. Like a balloon that gets too full, it does not take it much to deflate. Corporate debt is at all time highs. Make no mistake my friends the present trend in gold is DOWN. You are buying a bounce here. That is it. You can see by the chart.
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