- In the gold market, all analytical eyes should be on the Jackson Hole central banking conference. On Friday, Janet Yellen makes her speech.
- Please click here now . Double-click to enlarge this eight hour bars gold chart.
- Janet’s speech could be the catalyst that takes gold down to my $1310 target, and catapults it from there to $1392.
- Gold is trading in a triangle pattern that many technicians are watching, but fundamentals make charts; statements from key central bankers could easily take gold slightly lower before the “real move” higher begins.
- Please click here now . Double-click to enlarge. Technically, silver looks very healthy.
- Yesterday’s price decline may have been uncomfortable for price enthusiasts, but it did create a nice drifting rectangle pattern. That strengthened the overall technical situation.
- With these types of price patterns, there’s roughly a 67% chance of an upside breakout.
- Please click here now . US dollar bulls don’t have many powerful friends right now, and with good reason.
- Next, please click here now . Double-click to enlarge. The US dollar is the risk-on world’s flagship entity, and against the safe haven yen it looks like an ongoing train wreck.
- Please click here now . Influential Morgan Stanley strategist Hans Redeker highlights the truly horrifying growth in dollar-denominated debt held by European corporations. Rate hikes are not good news for those corporations, to put it mildly.
- Also, one of my key fundamentalist associates believes that Janet Yellen has some kind of off-book arrangement with the PBOBC.
- Essentially, the PBOC agrees not to unveil a hard devaluation for the yuan, and in return Janet agrees to raise rates only about once a year.
- I don’t know if such an agreement is in place or not, but it’s clear that gold soared as a risk-off trade after Janet’s first rate hike, and most of that upwards momentum faded when she began hinting in February that further hikes may be delayed.
- I’ll also categorically state that a big yuan devaluation could be a trigger event for a dramatic US stock market crash, and perhaps even a bond market crash.
- Further, it’s not just Janet Yellen that could begin a new down leg for the already-smashed dollar. Statements from the ECB or the BOJ also bear watching carefully.
- On that note, please click here now . Clearly, a bet on the dollar is a bet against gold, and against the top FOREX players at JP Morgan and Morgan Stanley.
- Gold is well-supported by a myriad of positive factors, including the price of oil. Please click here now . Double click to enlarge this daily oil chart.
- I sold some oil last week and rebought this morning. Goldman analysts refer to the rally as“shaky”. I think that’s a fair assessment, but if oil trades above the June highs in the $53 area, I’ll dare to suggest they will have a much more positive view.
- Please click here now . The love trade has been quiet in 2016, but maybe it’s not as quiet as it appears.
- When the Indian government unveiled its repressive import duty and the 80-20 rule, I was a strong critic and argued that criminal elements within the government stood to benefit, while hundreds of thousands of jewellery workers were sent to the bread line.
- Some Indian refiners and large corporate jewellers thought the duty would benefit them by wiping out their smaller competitors, but it’s clear that so much gold is being smuggled into India that the refiners and corporate jewellers are becoming unnecessary. The smugglers are now the “lords” of the Indian gold market.
- Nobody knows what the actual amount of gold coming into India is, other than the smugglers, but the tonnage is gargantuan, and it does add support to the gold price.
- T-bonds have become a risk-on market now, used by money managers for capital gains. Top hedge fund managers call the stock market a death trap. Real estate would be crushed by further rate hikes. Clearly, gold stands alone as the ultimate win-win asset in the eyes of many top analysts. Love trade demand is decent. Fear trade demand is superb. Supply is unchanged.
- Please click here now . Double-click to enlarge. GDX is trading sideways in a rough $28 – $32 range. All eyes in the Western gold community should be watching Janet at Jackson Hole on Friday, and all hands should be on the gold stocks buy button!
Full Article: Gold: All Eyes On Jackson Hole
Disclaimer© 2010 Junior Gold ReportJunior Gold Report’ Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR). No Guarantee as to Content: Although JGR attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. JGR, its associates, authors, and affiliates are not responsible for errors or omissions. Consideration for Services: JGR, it’s editor, affiliates, associates, partners, family members, or contractors may have an interest or position in featured, written-up companies, as well as sponsored companies which compensate JGR. JGR has been paid by the company written up. Thus, multiple conflicts of interests exist. Therefore, information provided herewithin should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. No Offer to Sell Securities: JGR is not a registered investment advisor. JGR is intended for informational, educational and research purposes only. It is not to be considered as investment advice. Subscribers are encouraged to conduct their own research and due diligence, and consult with their own independent financial and tax advisors with respect to any investment opportunity. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the companies mentioned herein. Links: JGR may contain links to related websites for stock quotes, charts, etc. JGR is not responsible for the content of or the privacy practices of these sites. Release of Liability: By reading JGR, you agree to hold Junior Gold Report its associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.
Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by our use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for accuracy of forward looking statements and advises the reader to perform own due diligence on forward looking numbers or statements.