Below is an important look at gold and the US dollar, plus the chart of the day.
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Chart Of The Day
September 11 (King World News) – Liz Ann Sonders, Chief Investment Strategist at Charles Schwab: “Recession probability model (based on 10y-3m YC) from New York Fed has jumped to near-40% (see below).
Gold & Negative Yields
Holger Zschaepitz: “Negative interest rates driving gold prices. (Chart via DB)
Gold Price And Negative Yielding Debt
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Holger Zschaepitz: Dollar is approaching valuation levels that in the past have led to intervention, DB says. Deviation of Dollar’s real effective exchange rate from medium-term avg is approaching historically mean-reverting 20% threshold. US government could tax foreign cap, econ equivalent to Fed cuts.
US Dollar Intervention Coming?
Graddhy out of Sweden: “…(Intermediate Cycle High)…Should get decent pullback as sentiment was/is very high. Think we have DCL around fib 38%, bounce, then ICL (Intermediate Cycle Low) at around one of the Fibonacci levels 50% ($1,416) or 61.8 % ($1,380). These two levels sync with my own levels.
Important Note On Gold & Mining Stocks
King World News note: Graddhy is looking at Fibonacci retracement levels as a logical target for gold on a correction. He is also looking at sentiment, which has been very bullish. However, it is important to remember that mining stocks are at one of the most undervalued levels in history vs gold. As an example, if gold were to correct to Graddhy’s most extreme target of $1,380, that would essentially be where the price of gold was trading at the 2016 high. Where was the HUI (Gold Bugs Index) trading at the high in 2016? Answer: The HUI was at 290 at the peak in 2016, and today the index is only trading at 214 with the price of gold over $100 higher. Meaning, mining stocks might not correct as much as one would think if the pullback in the price of gold extends further to the downside.
Graddhy Looking For Gold To Correct To $1,380-$1,415 Before Uptrend Resumes
Today’s Market Note From UBS Legend Art Cashin
READ THIS NEXT! Today’s Market Note From UBS Legend Art Cashin, Who Has Sent Out These Notes For Well Over 3 Decades CLICK HERE TO READ
More articles to follow…
In the meantime, other important releases…
BIG PICTURE: Very Bullish Outlook For Gold CLICK HERE TO READ
Biggest 1-Day Shift Since 2009! A Massive Gold Catalyst, Tick-Tock, Buy More Stuff, Plus One Heck Of A Bullish Gold Forecast CLICK HERE TO READ
Worst Day In A Decade, Trouble For Tapped Out Consumers And More CLICK HERE TO READ
Key Update On The Gold Market CLICK HERE TO READ
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