• 271 days Could Crypto Overtake Traditional Investment?
  • 276 days Americans Still Quitting Jobs At Record Pace
  • 278 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 281 days Is The Dollar Too Strong?
  • 281 days Big Tech Disappoints Investors on Earnings Calls
  • 282 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 284 days China Is Quietly Trying To Distance Itself From Russia
  • 284 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 288 days Crypto Investors Won Big In 2021
  • 288 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 289 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 291 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 292 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 295 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 296 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 296 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 298 days Are NFTs About To Take Over Gaming?
  • 299 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 302 days What’s Causing Inflation In The United States?
  • 303 days Intel Joins Russian Exodus as Chip Shortage Digs In
  1. Home
  2. Markets
  3. Other

Gold: All Eyes On Jackson Hole

Graceland Updates 4am-7am
August 23, 2016

  1. In the gold market, all analytical eyes should be on the Jackson Hole central banking conference. On Friday, Janet Yellen makes her speech.

  2. Please click here now. Double-click to enlarge this eight hour bars gold chart.

  3. Janet's speech could be the catalyst that takes gold down to my $1310 target, and catapults it from there to $1392.

  4. 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.

  5. Please click here now. Double-click to enlarge. Technically, silver looks very healthy.

  6. 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.

  7. With these types of price patterns, there's roughly a 67% chance of an upside breakout.

  8. Please click here now. US dollar bulls don't have many powerful friends right now, and with good reason.

  9. 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.

  10. 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.

  11. Also, one of my key fundamentalist associates believes that Janet Yellen has some kind of off-book arrangement with the PBOBC.

  12. 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.

  13. 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.

  14. 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.

  15. 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.

  16. 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.

  17. 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.

  18. 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.

  19. Please click here now. The love trade has been quiet in 2016, but maybe it's not as quiet as it appears.

  20. 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.

  21. 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.

  22. 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.

  23. 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.

  24. 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!

Thanks!
Cheers
St

 


Special Offer For Website Readers: Please send me an Email to freereports4@gracelandupdates.com and I'll send you my free "Smooth Gold Stocks Sailing" report. I highlight six great gold stocks with very modest volatility and outstanding upside reward potential, with precise entry and exit points for each one!

 

Back to homepage

Leave a comment

Leave a comment