After the recent plunge in gold and silver, here is the Trends Journal update on the action in the gold market.
Trends Journal Update On The Gold Market
August 20 (King World News) – Here is an exclusive look at the just-released Trends Journal update on the gold market: It’s no mystery. Gold, which has lost nearly 14 percent of its value since mid-April, has been declining sharply as U.S interest rise and the U.S. dollar strengthens.
Also, the Federal Reserve has signaled two more interest rate hikes this year and possibly three next year. Thus, higher rates will push up bond yields, making gold a less attractive investment because it does not bear interest … and it costs to store gold.
And since gold is dollar denominated, it makes it more expensive for holders of declining currencies.
Indian Gold Market
For example, India, a prime buyer of gold, saw its imports fall 25 percent in the second quarter as the value of its rupee had declined 9 percent against the dollar.
Meanwhile, In China
And in China, traditionally another strong gold market, with its yuan down more than 8 percent against the dollar since April, gold bullion sales plunged 15.65 percent year-on-year and gold coin purchases slumped 18 percent…
Listen to the greatest Egon von Greyerz audio interview ever
by CLICKING HERE OR ON THE IMAGE BELOW.
At The Bottom Of The Range
When gold hit $1,285 per ounce, we had forecast the downside risk would be around $1,200. As we go to press, it has fallen to $1,182, an 18-month low. However, we forecast gold is at the bottom range, and for investors and speculators, the downside risk will prove marginal.
And, while we are trends analysts and do not provide financial advice, we forecast gold will spike as powerful geo-political forces emerge that will offset the effects of higher interest rates and a strong dollar that pushed gold lower.
The Trigger Point
Specifically, escalating tensions in the Middle East, particularly in Iran, can be that trigger point.
Recently, President Trump restarted a series of crippling sanctions on Iran, including actions that inhibit international gold trading with Iran.
And, as the Iranian rial, which has lost 50 percent of its value against the dollar, dives to record lows, Iranians have been buying and hoarding gold as a safe haven asset against a collapsing currency and soaring cost of living made significantly worse by the U.S. sanctions. ***KWN has now released the powerful audio interview where Gerald Celente gives a sneak peak look at the just-published Trends Journal and also discusses the recent smash in the gold and silver markets and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
ALSO JUST RELEASED: After The Carnage, Here Is A Big Picture Look At The Gold Market CLICK HERE TO READ
© 2018 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the articles is permitted and encouraged.