LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

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

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

Why are Bonds Going for Broke?
By: David Haggith

Iran Attack Poses First Serious Test for Trump
By: Rick Ackerman, Rick's Picks

GoldSeek Radio: CEO Ken Lewis, Andrew Magure and CEO Tom Coughlin
By: Chris Waltzek, GoldSeek Radio

Precious Metals Update Video: Silver slipping away, trade got crowded
By: Ira Epstein

Black Hole Investing
By: John Mauldin, Thoughts from the Frontline

COT Gold, Silver and US Dollar Index Report - September 13, 2019
By: GoldSeek.com

Gold-Futures-Selling Overhang
By: Adam Hamilton, Zeal Research

Next Recession: The New Risks & New Profits Of A Grand Experiment
By: Daniel Amerman

Precious Metals Update Video: Gold consolidating
By: Ira Epstein

A “Looming” Recession Is a Golden Opportunity
By: Stefan Gleason

 
Search

GoldSeek Web

 
Gold: Central Bank Sentiment Is Rock Solid


 -- Published: Wednesday, 20 March 2019 | Print  | Disqus 

By: Stewart Thomson, Graceland Updates
 

1.   The next US central bank announcement is tomorrow, and whatever happens is win-win for gold.

2.   If the Fed surprises most analysts and hikes rates, the stock market probably crashes, and gold stocks rally strongly. 

3.   If the Fed does nothing and makes another statement that QT could end this year, the stock market likely rallies a bit and gold stocks outperform.  

4.   It’s a clear win-win situation for gold bugs around the world.

5.   I’m adamant that the US stock market would already look somewhat akin to the 1929 bear market if the Fed had not killed its “QT on auto pilot” and “rates are years away from being normalized” statements.

6.   In contrast, there was/is no QE in China or India.  In addition, interest rates are twice as high in China as America, and three times as high in India. 

7.   The bottom line:  Stock markets are propelled significantly higher or lower by central bank policy.  Chinese and Indian central banks have vastly more long-term ability to “juice” their stock markets higher than the Fed does.

8.   This leaves aside the “minor detail” that there are three billion citizens in Chindia.  The Chindian population absolutely dwarfs the US population.  The citizens are gold-oriented workaholics growing their economy at 6%-7% annually. 

9.   Most incredible of all: This growth is happening against the background of a quasi-communist government in China and a mafia-like government in India.

10.        What happens as those governments transition to the more business-friendly type of government that exists in America?  Answer:  Vastly more wealth and vastly more demand for gold!

11.        Please click here now: https://gracelandjuniors.com/wordpress/wp-content/uploads/2019/03/2019mar19bankgold1.png The almost universal enthusiasm for gold amongst elite bank analysts around the world right now is highly impressive.

12.        Their support for gold on this $70/ounce pullback has been unwavering and Commerzbank analysts appear to be predicting that a surge to the $1700 price zone is imminent!

13.        These heavyweight bank analysts influence the decision-making process of institutional money managers.  They also affect mainstream financial media.  Gold is gaining news coverage as an asset class to be respected.

14.        Please click here now: https://gracelandjuniors.com/wordpress/wp-content/uploads/2019/03/2019mar19bankgold2.png Bank America’s elite gold market analysts note the steady progress being made with global de-dollarization. 

15.        The bulk of the action taking place on that front involves fresh and steady allocation to gold by central banks.  India’s savvy central bank was a massive buyer near the 2009 lows and now it appears to be committing to a monthly buy program. 

16.        For gold price forecasting, retail investor sentiment is becoming less important than it was in the past.  What matters now is central bank sentiment and bank analyst sentiment.  The phrase that describes that sentiment best is:  Solid as a golden rock!

17.        Please click here now: https://gracelandjuniors.com/wordpress/wp-content/uploads/2019/03/2019mar19gold1.png Double-click to enlarge.  As relentless Chindian demand growth, limited mine supply growth, and central bank de-dollarization all take the centre stage of price discovery in the eyes of the elite bank analysts, negative technical formations like this H&S top will continue be voided, and gold’s uptrend will continue. 

18.        As gold pulled back to the $1280 I suggested that could be the new floor for the price.  The powerful rally in the rupee taking place against the dollar now is triggering a surge in Indian dealer demand.  In turn, that’s causing powerful commercial bank traders to cover short positions.

19.        Trump is working hard to reverse the damage to global stock markets that his tariffs caused and the Fed has become highly supportive with its statements and actions.  I see no reason for that to change with this week’s FOMC policy announcement and Trump is going to intensify his efforts to get a trade deal that is friendly to stock markets.

20.        I’m “long and strong” the US stock market, the Indian stock market, the Chinese stock market, and the entire precious metals sector… with a wide array of investment vehicles. 

21.        Please click here now: https://gracelandjuniors.com/wordpress/wp-content/uploads/2019/03/2019mar19gdx.png Double-click to enlarge this GDX daily chart. While I’m long DUST-NYSE at my www.guswinger.com swing trade service, that’s a mechanical short-term system designed to produce solid profits during wild volatility events like the Fed meet.

22.        In the big picture, volume is soft on down days for most gold stocks.  Volume is rising as the price rises.  That’s bullish.  Most importantly, the GDX price action can be themed as… “solid”.  As gold rallied to $1350, I predicted that many individual miners would keep rallying as gold pulled back. 

23.        A big feature of the current $70/ounce gold price consolidation has been the continued rally of many miners.  A rise in gold to the $1520 area would turn these miners into cash cows, and a further rally to Commerzbank’s $1700 predicted price should cause an institutional feeding frenzy!

24.        Gold is steadily reclaiming its title as “ultimate asset”, which means it rises in good times and bad.  If global stock markets rise, gold rises.  If global stock markets crash, gold rises.  Owning gold is now the “ultimate no-brainer” tactic for central banks and heavyweight bank analysts.  Let’s hope that sentiment envelops 100% of the Western gold community… right here, right now!

 

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://gracelandjuniors.com    

www.guswinger.com  


| Digg This Article
 -- Published: Wednesday, 20 March 2019 | 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 - 2019



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


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC 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, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.