Gold Stocks: A Fabulous Rally Accelerates Stewart Thomson
Jan 17, 2017
- Rate hikes tend to be good for gold, and even better for gold stocks. On that note, please click here now. Double-click to enlarge this hourly bars gold chart.
- Since Janet Yellen hiked rates in December, gold has rallied almost $90. That’s good news, but the great news is that the US central bank plans more rate hikes this year.
- Gold has a rough historical tendency to decline ahead of rate hikes, and rally strongly after they happen.
- Please click here now. Double-click to enlarge this daily bars gold chart.
- The 14,7,7 Stochastics oscillator is beginning to show signs of “flat lining” in the overbought position. That tends to happen during very strong rallies.
- Britain’s prime minister Theresa May is about to make a key speech on the Brexit. That could push gold into my next profit booking target zone at $1245.
- Both gold and gold stocks have been chewing through overhead resistance zones with ease this year, and $1245 is the next one. Gold price enthusiasts should be light sellers if gold goes near that $1245 target zone.
- Please click here now. Double-click to enlarge. The dollar continues to weaken against the safe-haven yen, with smart money bank traders long the yen, and short the dollar.
- Gold’s rally began when the dollar began falling against the yen in December.
- Please click here now. Donald Trump is good for gold in a number of ways.
- Uncertainty is one of them, but he’s also poised to ramp up infrastructure spending (inflationary).
- Also, for the past 50 years, gold sports a good track record of rising during US presidential transition years. 2017 is a transition year.
- Trump endorses a lower dollar and higher interest rates. If he’s able to do that, inflationary pressures would increase quite dramatically.
- Higher rates incentivize banks to make loans, and a lower dollar itself pushes gold higher.
- As good as gold looks now, gold stocks look even better. Please click here now. Influential analysts at Credit Suisse bank are very positive about gold stocks, regardless of whether gold rises or falls, but they see gold at $1300+ in 2017.
- Mining companies that have cut costs are well-prepared to handle lower gold prices, and they will have great profits at even slightly higher prices.
- Please click here now. Double-click to enlarge this fabulous GDX chart.
- GDX is breaking out of a drifting rectangle, and beginning to surge towards the $25 target zone. Gamblers can buy the breakout with a tight stop-loss order, targeting that $25 area.
- Longer term investors who bought in the $20 - $18.50 area can lighten up a bit in the $25 area too, if GDX makes it there.
- Please click here now. Double-click to enlarge.
- T-bonds are rallying nicely along with gold, and Ben Bernanke just added some “punch” to the price action, with his latest statement that the decline in the T-bond was likely a bit overdone.
- Please click here now. Double-click to enlarge this silver chart.
- Silver is moving higher in a “steady as she goes” manner. This type of price action is indicative of a rally that may be in the early stages, rather than near an end.
- For another look at the silver chart, please click here now. The $17.30 area is quite important. I think the Trump inauguration should be the catalyst that moves silver above $17.30, and ushers in the kind of “meat and potatoes” rally that most of the world’s silver bugs are waiting for!
Jan 17, 2017
email for questions: email@example.com
email to request the free reports: firstname.lastname@example.org
|Tuesday 18th Feb 2020
Special Offer for 321Gold readers: Send an email to email@example.com and I'll send you my free “Golden Mine Stock Popping Corn!” report. I highlight under the radar junior miners that are popping higher, while the precious metals ETFs seem stuck in the mud. I include key buy/sell tactics for each stock.
Updates Subscription Service: Note we are privacy oriented. We accept cheques.
And credit cards thru PayPal only on our website. For your protection
we don't see your credit card information. Only PayPal
|Subscribe via major credit cards
- or make checks payable to: "Stewart Thomson" Mail
to: Stewart Thomson / 1276 Lakeview Drive / Oakville, Ontario
L6H 2M8 / Canada
is a retired Merrill Lynch broker. Stewart writes the Graceland
Updates daily between 4am-7am. They are sent out around 8am. The
newsletter is attractively priced and the format is a unique numbered
point form; giving clarity to each point and saving valuable
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 qualifed 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: