By: Adam Hamilton, CPA, Zeal Research - 3 January, 2020
The bottom line is gold stocks’ Christmas breakout rally looks like a mid-correction head fake. Gold’s own driving downtrend-breakout rally wasn’t fueled by sustainable investment buying. Instead speculators were aggressively piling into gold-futures longs. But since that catapulted those upside bets back up near all-time-record highs, their buying firepower is effectively tapped out. There’s little left to fuel further gold gains.
With investors not materially buying gold and gold-futures speculators no longer able to, odds are gold’s breakout surge is going to fizzle out and roll over. That’s going to unleash serious normalization selling in gold futures that will likely cascade. The resulting gold selloff will certainly yank the rug out from under the surging gold stocks. They face major near-term downside if gold’s shallow and short correction resumes. Full Story
As we approach the end of the year, and of the decade, it is important to have something positive to look forward to. Exactly a hundred years ago, towards the end of 1919, Hitler was able to look forward to becoming the leader of the Third Reich, while our aspirations are somewhat more modest and include having a powerful bullmarket in copper to capitalize upon. Full Story
By: Avi Gilburt, Elliott Wave Trader - 3 January, 2020
You see, just like technicals have to be read differently during bull markets versus bear markets, so does the COT. During bear markets, when the technicals reach an overbought level, then it often suggests the market will likely begin a selling phase. However, in a bull market, when the technicals reach an overbought level, rather than suggesting selling will result, the technicals often embed during the strong advance of a bull market. The same will often happen with the COT. So, applying a linear expectation to the COT data will not often result in the appropriate trading result.” Full Story
Chances of a war with Iran has resulted in gold and silver rising today. Crude oil has also risen on supply disruptions from Iraq. Only profit taking (before the weekend) can result in a crash or correction in gold and silver. However gold and silver do not correct then chances of $1575 and $1888 will be very high today. A weaker US dollar is also aiding the rise in gold and silver. Big economic data releases start is from next week. Full Story
Indian rupee had weakened against the US dollar in 2019. There is massive disappointment among the voters after giving a second term to Modiji. Lack of jobs and bad Indian economy has cost the Bharatiya Janata Party (BJP) heavily as they have lost every state elections after the central vote. Every Indian economic number of 2019 suggested continued slowdown. Real cost of living for the masses at the end of 2019 is much higher than at the beginning of 2019. Indian economy is more dependent on local factors and less on exports so we cannot outright blame global factors as the reason for the slowdown. Full Story
I’m growing more confident that we’re on the cusp of a big move higher in the precious metals sector because of the Fed’s massive money printing. Also, because the money printing and near zero interest rates are visibly not stimulating economic growth, we’re at the point at which unless the Fed continues increasing the amount of money it puts into the system, the melt-up in the stock market is completely unsustainable. Full Story
Silver is undervalued. 2020 should be silver year and not a golden year. I am very bullish in silver in the next decade. Industrial demand of silver will rise with each passing year and the at the same time silver supply deficit will increase will passing of each year. A strong silver fundamental should result in it attracting more and more traders and investors alike. Full Story
Gold had its biggest weekly advance in more than four months, and with only a few days left in 2019, the metal is headed for its best year since 2010, reports Bloomberg. Margaret Yang, analyst at CMC Markets Singapore Pte, says investors are betting that gold is poised for a rebound after three months of price consolidation. Turkey’s central bank increased its gold holdings by $446 million from the previous week. Full Story
With just one, holiday-shortened day to go, it appears that Comex gold and silver will actually finish 2019 with "the best annual gains since 2010". That was a bold forecast when we made it back in January. That it has turned out correct brings more relief than satisfaction.
As we move to wrap up 2019, here's one last look at this year's primary guide. Recall that we had "The Generally Accepted Narrative" in 2017 and "The Three Themes" of 2018. This year, we expected the year to be similar to 2010... Full Story
There is a broad array of fundamental reasons for a bullmarket of unprecedented magnitude in gold, but by far the most important of them is the ongoing and accelerating destruction of currencies by Central Banks. They are responding to crushing debt burdens with money creation on a gargantuan scale, and we can expect them to maintain a low or negative interest rate environment and to pump money like crazy, since faced with a choice between a liquidity lockup and systemic implosion, and rampant money creation leading to hyperinflation, they are bound to follow the latter course because it is more gradual and buys them more time. While all Central Banks around the world are playing the same game, they will find it very hard to keep up with the Federal Reserve of the US which is ramping up money creation at a frenetic pace, the effect of which will be to collapse the dollar, which is already starting to break down – hence last week’s rally in gold and silver. Full Story
Thank you everyone for your support year too. Since founding “Inisgnia Consultants” in May 2003, I have been making changing changes (every year) to ensure that our clients are updated with all the information to make maximum profit. “To err is humane”. There have been days where our views on some metals, energy or currency bombarded. Still our clients have supported us. Thank you for the same.
In my view 2020 will be the best year for trading in all metals, energies and currency markets. Head and shoulder formation on the technical chart in gold and silver. This is a bullish signal. If gold and silver rise this week, then they will be at stratosphere. Full Story
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