To 321gold home page

Home   Links   Editorials

Gold Consolidates As The Fed Loses Control

Stewart Thomson

Sep 19, 2019

  1. Please click here now . The Fed just cut interest rates again. It also cut the rate it pays banks on their excess reserves.

  2. What does this mean for gold? Well, the 30basis point cut on excess reserves is bigger than the 25basis point cut on the fed funds rate. That could incentivize banks to loan money to the private sector rather than store it at the Fed.

  3. Institutional money managers wanted to see a half point cut. That didn’t happen but Jay Powell did talk about potentially restarting QE.

  4. The bottom line is that current Fed action is mildly inflationary and generally supportive for gold.

  5. Please click here now . Double-click to enlarge this daily gold chart. A sloping channel of support is helping mitigate the downside implications of a head and shoulders top pattern, and a key Stochastics oscillator is oversold.

  6. Unless gold closes under $1490, the most likely move from here is a test of the $1566 area highs.

  7. Please click here now . Some money managers believe the Fed is on the verge of losing control of interest rates.

  8. More money printing may be required to regain control. That’s negative for the dollar and the stock market. It’s positive for gold and the yen.

  9. Please click here now . Double-click to enlarge. This dollar versus yen chart looks terrible. The downtrend is a broadening channel and a small bear wedge is in play.

  10. Please click here now . Double-click to enlarge this GDX daily chart. While a significant reaction or surge to new highs for gold stocks is possible, the most likely price action now is a sideways market; a range trade for GDX between $26 and $31.

  11. Tactics? I suggest buying in the $26-$27 area and selling at $30-$31, while awaiting a major breakout above $31 on the weekly chart.

  12. Please click here now . Double-click to enlarge. The price target of the GDX weekly chart rectangle is about $45!

  13. Gold, silver, and the miners are in a mild and expected pause at weekly chart resistance zones. My swing trade service for NUGT and DUST is a great way to play the range trade action, while awaiting the weekly chart breakout.

  14. Gold is solidly supported by mid-East geopolitical action, dovish central bank action, a peaking US business cycle, and governments that can’t shake their addictions to spending and debt. For precious metals investors, good times are here, and great times are near!



Sep 19, 2019
Stewart Thomson
Graceland Updates
email for questions:
email to request the free reports:

Tuesday 31st Mar 2020
Special Offer for 321Gold readers
: Send an email to and I'll send you my free “Royalty Companies: Key Juniors & Seniors!” report. Low-debt gold and silver royalty companies are poised to prosper as Corona hurts other miners. I high five of the great ones, with key tactics for each stock!

Graceland 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 does.

Subscribe via major credit cards at Graceland Updates - or make checks payable to: "Stewart Thomson" Mail to: Stewart Thomson / 1276 Lakeview Drive / Oakville, Ontario L6H 2M8 / Canada

Stewart Thomson 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 reading time.

Risks, Disclaimers, Legal
Stewart 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:

Are You Prepared?

321gold Ltd