As we end the first week of trading in July, here is a look at volatility in gold and silver, serious problems underneath the surface, plus another bullish gold catalyst.
The Fed Ruins Everything It Touches
July 5 (King World News) – Peter Schiff: “Judy Shelton’s support for a gold standard will likely change nothing if she joins the Fed. Alan Greenspan was a long-time advocate of the gold standard prior to his becoming Chairman. That did not stop him from sacrificing his principals to appease markets and politicians.
CAUTION: Rally Today But US Dollar Just Beginning Bear Phase
Peter Schiff continues: “Gold and the U.S. dollar are over-reacting to June’s jobs number that can easily be revised lower. The economy is slowing and job losses are typically the caboose not the engine of the recession train. The Fed will cut, it will not prevent recession, but it will boost inflation!”
Look For Additional Consolidation In Gold
OIe Hansen, Head of Commodity Strategy at SaxoBank: “Two long tails and a double top on the weekly gold chart point towards additional short-term consolidation. The key area of support can be found at $1380/oz (38.2% retracement of the 2011 to 2015 sell-off) followed by the 2016 high at $1375/oz and 2018 high at $1366/oz. (See chart below).
REMAIN PATIENT: Gold Action Points To Additional Consolidation
Serious Problems Underneath The Surface
Jeff Snider at Alhambra Partners: “With half of it in the books already, 2009 remains on track to be the worst year for jobs since 2010. Everyone is waiting for the sexy negative monthly Est. Survey figure, the fact that this is what’s going on now actually increases the chances that will happen at some point. (See chart below).
This Is Not Booming, Nor Is It Prosperity
Another Bullish Gold Catalyst: Currency Wars
Lawrence McDonald, Former Head of Macro Strategy at Society Generale: “What??? The Fed has been reducing the bal sheet since 2014. Forex reaction to QE is history, light years away now.
Last 4 Years Balance Sheet Games
Fed: -$660B
ECB: +$2.5T
There’s the forex impact, Euro suppression games.”
King World News note: Yes, as currency wars intensify it will be yet another bullish catalyst for gold. Within hours KWN will be releasing an important audio interview discussing the wild trading we are seeing in global markets and what to expect next.
Gold Pullback, Plus What Has China Worried
READ THIS NEXT! Gold Pullback, First Time Ever, Monetary Madness, And What Has China Worried CLICK HERE TO READ
More articles to follow…
In the meantime, other important releases…
A Truly Remarkable Read On The 4th Of July CLICK HERE TO READ
It’s Like Magic, Plus This Remarkable Chart Tells You All You Need To Know About The Gold Market CLICK HERE TO READ
WARNING: This Can’t Be Good…Even More Instability, Plus A Silver Slingshot CLICK HERE TO READ
What A Surprise…This Can’t Be Happening, Plus Silver Close To Being Unleashed CLICK HERE TO READ
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