All Golden Eyes On The Fed Stewart Thomson
Jun 13, 2017
- The next US central bank interest rate announcement is scheduled for tomorrow afternoon. Gold and related assets are now in “pause mode” against most fiat currencies.
- Gold has a rough general tendency to decline ahead of a rate hike, and then rally strongly after a hike is announced.
- That has happened in textbook fashion with the first three rate hikes in the current hiking cycle.
- There’s no guarantee that it happens again this time, but if it does gold should take out the weekly chart downtrend line that has the attention of institutional technical analysts.
- Please click here now. Double-click to enlarge this fabulous monthly gold chart.
- Note the buy signal flashing on the Stochastics oscillator at the top of the chart. It’s happening in the 50 area, which indicates strong momentum.
- Also, the TRIX indicator at the bottom of the chart is about to cross over the zero line. This is extremely positive technical action.
- Technical breakouts that are produced by fundamentally important events are significant.
- The bottom line is that a breakout on the monthly gold chart that occurs in the days following tomorrow’s Fed announcement could be a gamechanger for gold market investors.
- Please click here now. Double-click to enlarge this weekly chart of the US dollar versus the Canadian dollar.
- The dollar already looks like a train wreck against both the Japanese Yen and the Indian rupee. Now it’s poised to go off the rails against the Canadian dollar. I’ve set an initial target zone in the $1.25 area.
- Please click here now. Double-click to enlarge this oil chart.
- Oil is by far the largest component of the major commodity indexes. A rally in the Canadian dollar tends to coincide with a rally in those indexes.
- That’s inflationary, and more good news for gold.
- Please click here now. Good news for gold is happening around the world, and when it’s coming from India, commercial traders tend to buy long positions in size on the COMEX.
- After years of gold-negative policy announcements, India’s government has begun to make announcements that are cheered by the gargantuan gold jewellery industry.
- Millions of industry workers have been sidelined by the barbaric legislation of the government in recent years. I’m predicting that most of them will be back at work within twelve months.
- India’s gold jewellery market will be in expansion mode very quickly, which means the COMEX gold price will be in upside expansion mode even more quickly!
- Please click here now. Double-click to enlarge this gold chart. Active traders can take action on the buy-side right now to capitalize on a potential rate hike rally following tomorrow’s Fed announcement. Long term investors can place buy orders in the $1220 price zone.
- My personal focus for fresh precious metals sector buying is GDX, the gold stocks ETF.
- Please click here now. Double-click to enlarge this GDX versus gold chart.
- There’s not much point in buying a high-risk asset class like gold stocks if they are not poised to outperform the underlying low-risk asset class of gold bullion. The good news is that gold stocks are technically poised to do so right now.
- Most of the gold stock pipeline news flow is now positive. More rate hikes are needed to reverse the multi-decade bear cycle in US money velocity, and Fed-focused economists have assigned roughly a 95% chance of a rate hike tomorrow.
- GDX has been drifting sideways to lower against gold bullion since February. I’m a very aggressive buyer on any price weakness between now and tomorrow’s Fed announcement. There’s no guarantee that the Fed’s fourth rate hike will be followed by a fourth glorious gold sector rally against global fiat, but I will suggest that all investors should be poised to profit, if it happens!
Jun 13, 2017
email for questions: firstname.lastname@example.org
email to request the free reports: email@example.com
|Tuesday 26th May 2020
Special Offer for 321Gold readers: Send an email to firstname.lastname@example.org and I'll send you my “ETFs Versus Individual Miners!” free report. I highlight the unique risks and rewards associated with key individual miners and ETFs, so investors can decide whether to own the miners, the ETFS, or both! I include buy/sell points of action for each item.
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: