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

SWOT Analysis: Gold Bounced Back After Attempts to Knock Down Price
By: Frank Holmes

Hyperinflation in Zimbabwe – It’s back, but maybe not for long
By: JP Koning

Gold Versus Bitcoin: The Pro-Gold Argument Takes Shape
By: John Rubino

Inflation and Counterfeit Credit
By: Keith Weiner

Gold's Interesting Day
By: Rick Ackerman

Two Scenarios, One Strategy
By: Gary Savage

Zinc One Files a Technical Report on Scotia Property
By: Zinc One Resources Inc.

Money and Markets Infographic Shows Silver Most Undervalued Asset
By: GoldCore

Asian Metals Market Update: November-20-2017
By: Chintan Karnani, Insignia Consultants

GoldSeek.com Radio: John Williams and Louis Navellier, and your host Chris Waltzek
By: radio.GoldSeek.com

 
Search

GoldSeek Web

 
Say No To Debt Ceiling Drugs


 -- Published: Wednesday, 2 August 2017 | Print  | Disqus 

By: Stewart Thomson

1.   Gold has rallied more than $60 per ounce in the last few weeks.  In the short term a new catalyst is needed to continue the rally, but the big picture looks fabulous.

2.   Please click here now.  India has a population of about 1.3 billion people, with the World Gold Council (WGC) noting that about 60% of them are under the age of 25.

3.   The WGC appears to be significantly underestimating the pace of recovery of the nation’s jewellery market. Indian demand in the first half of 2017 has already exceeded demand for the entire 2016 calendar year. 

4.   Chinese demand is solid, and Turkey is becoming a potential third force of significant love trade demand.

5.   Having said that, it could be the fear trade in the West that pushes gold over $1300.  I refer to the US debt ceiling as a floor, and President Trump has wondered out loud if a government shut down is needed to stop congress from passing the buck.

6.   Unfortunately, Trump’s Treasury Secretary is in favour of passing the buck once again, but Trump has shown himself to be willing to stand up to anyone he feels is an obstacle to his agenda. 

7.   Trump’s next statement regarding the debt floor will be a key indicator as to whether fear trade investors can help gold retake the $1335 price area that was hit on the night of Trump’s election. 

8.   That rally was violently destroyed by the Indian government’s demonetization announcement.  Conspiracy buffs will note that the demonetization announcement came just as it was clear that Trump had won the election. 

9.   Perhaps it was coincidence, and perhaps not. Regardless, the good news for gold bugs is that the news about gold coming out of India is now quite positive. 

10.        With a supportive love trade from India, China, and now Turkey, any US debt floor shock could create significant fear trade buying on the COMEX.  That would almost certainly push gold to $1335 or higher.

11.        Please click here now. Double-click to enlarge this daily gold chart.

12.        Note the position of my 14,7,7 Stochastics series oscillator at the bottom of the chart.  In the short term, gold is overbought. 

13.        The lead line of the oscillator is at the 90 level.  Gold bugs should cheer that the oscillator has a “flat line” event, and the rally continues. 

14.        Regardless, some profit should be booked into this price strength.  Please click here now.  Investors who place heavy bets against the commercial traders generally don’t fare very well.

15.        It’s clear that these powerful commercial traders are selling and shorting gold with some size now. 

16.        That makes sense after a $60 rally.  Gold bugs should book some profit while cheering for further gains.  This is a simple approach, and a winning one!

17.        The US dollar index gets a lot of coverage from gold analysts.  Bank FOREX traders tend to focus more on the dollar versus the yen, and rightly so.

18.        Please click here now.  Double-click to enlarge.

19.        This weekly chart paints a picture of a weak dollar against the yen.  Further weakness appears imminent.  That’s good for gold.

20.        Please click here now. Double-click to enlarge this interesting gold versus dollar index chart.

21.        Arguably, there’s a huge double-bottom pattern in play, with a neckline at the 14.44 price zone.  The target of the pattern is the resistance in the 17 area.   That would correspond with a gold price of about $1400. 

22.        Many gold mining companies have significant cost cutting programs in play.  Many are in advanced stages, and that means that even a modest rise in the gold price can turn these companies into highly profitable “cash flow cows”.

23.        Please click here now. Double-click to enlarge this GDX chart.  It has a solid feel to it, and the current “steady as she goes” rally looks better than the previous ones.  Profit needs to be booked on this price strength, but very lightly! 

24.        A major upside breakout above $26 is likely to coincide with a key breakout above 14.44 on the USDX versus gold chart.  Donald “The Golden Trumpster” Trump could be the catalyst that makes the breakout happen if he soon says “no” to any more US government debt ceiling expansion drugs!

 

 

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   

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: Wednesday, 2 August 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.