Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 1% and 2% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 17 2017
By: Ira Epstein

Next-Generation Crazy: The Fed Plans For The Coming Recession
By: John Rubino

COT Gold, Silver and US Dollar Index Report - November 17, 2017
By: GoldSeek.com

Gold Miners’ Q3’17 Fundamentals
By: Adam Hamilton, CPA

Bonfire of the Absurdities
By: John Mauldin

The Social Security Inflation Lag Calendar - Partial Indexing Part 1
By: Daniel R. Amerman, CFA

Rob From The Middle Class Economics
By: Gary Christenson

GoldSeek Radio Nugget: John Williams and Chris Waltzek
By: radio.GoldSeek.com

The Metals Market Is A Mess And Will Likely Continue To Frustrate You
By: Avi Gilburt

 
Search

GoldSeek Web

 
US Jobs Report: Key Driver For Gold


 -- Published: Tuesday, 3 January 2017 | Print  | Disqus 

Graceland Updates

By Stewart Thomson

 

1.    While the December 31 selling in gold and gold stocks may have rattled gold bugs a bit, the fact is that gold begins 2017 in pretty good shape. 

2.    Big fundamental themes that weighed on the “ultimate asset” in 2016 appear ready to reverse and become supportive for higher price action.

3.    Please click here now.  For much of 2016, the size of the commercial trader net short position was a headwind for gold. 

4.    In recent weeks, that’s been reduced quite significantly.

5.    Leveraged hedge funds have also reduced their long positions.  That’s healthy action because the funds use too much leverage.  As a result, modest selling by the commercial traders creates margin calls for the funds, and gold community investors can feel pain too.

6.    The bottom line is that in terms of the overall positioning on the COMEX, the gold market is in a much healthier position now.

7.    Please click here now.  Top jewellers in Dubai are predicting that the gold jewellery demand cycle is bottoming, and 2017 will see both Indians and UAE residents buying with confidence.  This is very good news.

8.    Dubai is known as the “City of Gold”, and the Shanghai Gold Exchange is very active in building gold market infrastructure there.  This partnership is likely to strengthen in 2017. 

9.    In the short term, gold has a rough general tendency to decline ahead of the US jobs report, and then rally after the report is released.  The next report comes out this Friday. 

10. Please click here now.  Double-click to enlarge.  In the world of fiat currencies, the price action of the US dollar versus the yen has tremendous influence on the gold price.

11.  There’s a pennant-like pattern in play on this daily chart, and a run to the 125 area looks likely. 

12. In the big picture, though, there’s a major bull non-confirmation taking place.  The dollar is making intermediate trend highs against the USDX index, but not against gold or the yen.

13. Please click here now.  The commercial traders are buying the safe haven yen aggressively, while the leveraged funds are shorting it. 

14. 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.

15. The inauguration of Donald Trump on January 20 could also coincide with a price of 125 on the dollar versus yen chart.  If so, the rally in the gold price of the past few weeks could be set to accelerate then, in a very big way.

16. Please click here now.  The franc is another safe haven currency, and its price action against the dollar has a high correlation with gold’s action against the dollar. 

17. The commercial traders have an outstanding track record in both the gold and fiat currency markets.  They are suddenly buying the Swiss franc against the dollar, and doing so very aggressively. 

18. 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!

19. Please click here now.   Double-click to enlarge.  Another important correlation for gold investors to follow is the T-bond chart priced in US dollars.

20. The T-bond appears to be basing, and commercial traders have also been buyers recently.  

21. Please click here now.  The commercial “smart money” traders are now net long the T-bond.  Do they have information that other traders are missing?  Perhaps they have some insight into what will happen after Donald Trump gets inaugurated?

22. Regardless, they are clearly strong buyers of safe haven francs, yen, T-bonds, and decent buyers of gold.

23. Please click here now.  Double-click to enlarge this GDX chart. 

24. I’ve been pretty emphatic that the $18 area is for buying GDX and $22 is for selling.  From both a technical and fundamental perspective, it’s logical that gold stocks pause here ahead of the US jobs report.  This pause will help them launch a second and more successful assault on the $22 - $22.50 resistance zone, after the report is released!

 

Thanks! 

Cheers

St

 

Stewart Thomson 

Graceland Updates

 

Note: We are privacy oriented.  We accept cheques, credit card, and if needed, PayPal.

 

Written between 4am-7am.  5-6 issues per week.  Emailed at aprox 9am daily.

 

https://www.gracelandupdates.com   

https://gracelandjuniors.com     

www.guswinger.com  

 

Email:

stewart@gracelandupdates.com  

stewart@gracelandjuniors.com  

stewart@guswinger.com  

 

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form.  Giving clarity of each point and saving valuable reading time.

 

Risks, Disclaimers, Legal

Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:  

Are You Prepared?

 


| Digg This Article
 -- Published: Tuesday, 3 January 2017 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.