• 5 hours The Biggest Biotech Story Of 2021?
  • 12 hours Biden Looks To Rejoin Paris Climate Agreement
  • 1 day Capital One Fined Again For Money-Laundering Failure
  • 1 day 3 Stocks That Could Win Big As The Biden Administration Takes The Wheel
  • 1 day The Star-Studded Fund Backing Clean Energy Startups
  • 2 days The Unexpected Retail Segment On Track To Hit $68B
  • 4 days Oil Demand Falters On New Wave Of Lockdowns
  • 5 days Signal, Telegram Gain Ground As Social Censorship Breaks Headlines
  • 6 days Investors Should Be Worried About Tech Stocks
  • 8 days Battle For Market Share Intensifies In COVID Streaming War
  • 10 days Censorship Is Now Private, And That’s Scary
  • 13 days Markets Hit ‘Ignore’ Over Capitol Coup
  • 14 days Tesla’s China Strategy Is Yet Another ReasonTo Double Down
  • 15 days NYSE Reverses China Company Delisting Plans … For Now
  • 17 days The Dollar Could Remain Weak For Years To Come
  • 20 days The Simple Secret To Tesla-Like Gains
  • 21 days US-Listed China Stocks Have 3 Years To Become Transparent
  • 23 days $30,000 Is The New $20,000 For Bitcoin
  • 24 days Gold Slips Following Stimulus Announcement
  • 24 days Illegal Streaming Targeted In The 5,000 Page COVID-19 Stimulus Bill
Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

Trade In Counterfeit Goods Hits Half A Trillion Dollars

Trade In Counterfeit Goods Hits Half A Trillion Dollars

The counterfeit market has breached…

Tesla Struggles To Compete In European Market

Tesla Struggles To Compete In European Market

Tesla continues to catch the…

Stewart Thomson

Stewart Thomson

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is…

Contact Author

  1. Home
  2. Markets
  3. Other

Gold: A Significant Rally Begins?

Graceland Updates 4am-7am
Dec 27, 2016

  1. Gold may be in the first stage of a significant rally. Please click here. Double-click to enlarge.

  2. Gold has burst out of the short term down channel, and the recent action of the "smart money" commercial traders is very positive.

  3. Please click here. This COT report for gold shows the commercial traders not only covering short positions in the latest reporting period, but also adding a nice number of longs!

  4. This is very encouraging news. Regardless, amateur gold enthusiasts need to buy dips and sell rallies, to mimic the smart money professional traders.

  5. On that note, please click here. Double-click to enlarge.

  6. Gold has already rallied about $25 from the $1125 area lows, and the commercial traders are almost certainly booking partial profits now. As the saying goes, the early bird gets the golden worm!

  7. I have been getting emails from some gold community investors who are worried that the Indian government is conducting a "war on gold". To a degree, that's true, but all governments tend to prefer debt and fiat to gold. 

  8. Gold empowers citizens and debt and fiat money allow governments to present themselves as grandiose "people helpers".

  9. Narendra Modi is India's prime minister. In my professional opinion, he's obsessed with turning India into what is really best described as a giant GDP growth factory.

  10. Individual freedom in India doesn't seem very important to Modi. His focus is on achieving double digit GDP growth, and creating an enormous middle class.

  11. Modi clearly embraces the "end justifies the means mantra", but I don't think it's negative for gold demand, except perhaps in the very short term.

  12. In the big picture, Modi's actions are very supportive for higher gold demand. Simply put, as citizens get higher incomes, they buy more gold.  Some is bought in the open market, and some is bought in the black market.

  13. The short term picture for India-focused gold investors is starting to look better as well. Please click here.  While nobody should celebrate before there is an actual duty cut, where there is smoke, there is fire.

  14. Modi looks like a hypocrite if he talks about reducing black money while keeping high gold import duty policies that promote smuggling. The upcoming February budget could see India's finance ministry finally unveil a cut of the duty.

  15. Meantime, from a geopolitical perspective, tensions may be set to increase between Japan and China, with US debt being the catalyst.

  16. Some analysts note that Japan has now surpassed China, and is the largest holder of US T-bonds.

  17. The term "surpassed" is a bit misleading. To understand why that's true, please click here. Japan actually sold Treasuries recently, although China sold more.

  18. China and Japan have a longstanding dispute over a military issue that has never been resolved. I'm not concerned about Donald Trump causing a deterioration in US-China relations, but I'm very concerned that he could ignite a significant rise in China-Japan tensions.  That's good news for gold.

  19. A crash in the US stock market is possible early in 2017, and it could happen soon after Trump is inaugurated as president. That crash would create an institutional surge out of the US dollar, and into the yen and gold.

  20. That crash could cause Japan and China to sell even more Treasuries, as their stock markets would follow the US market.

  21. The current time frame may turn out to be the calm before a major 2017 global markets storm!

  22. Please click here. With inflation starting to perk up while mine reserves dwindle, gold stocks are poised to become a highly sought after asset for the rest of this decade.

  23. On that note, please click here. Double-click to enlarge.  From both a fundamental and technical perspective, GDX looks superb.  There's a bull wedge in play, and the price is gapping higher in early morning trading.

  24. GDX looks set to make a beeline straight for $22. The bottom line is that there's really no better way for a global community investor to start their day, than by watching gold stocks move higher!

Thanks!
Cheers
St

 


Special Offer For Website Readers:  Please send me an Email to freereports4@gracelandupdates.com and I'll send you my free "Shine My Silver Mining Stocks! report.  I compare 3 key gold stocks to 3 top silver stocks, and show why it may be time for silver stocks to shine brightest!  I include specific buy and sell action prices for each stock.

 

Back to homepage

Leave a comment

Leave a comment