It’s decision time for gold, plus a look at China, silver and stagflation.
Gold & Stagflation
October 8 (King World News) – Fred Hickey: Terrific jobs report (if one is a gold investor…everyone else – not so much). Weak jobs creation and sharply higher average hourly wages = stagflation. Best environment for gold. Fed will still need to taper (leading to popping the stock and bond asset bubbles).
China came back from Golden week holiday last night and voila – no more gold pounding (wise guy shorting) during Asian hours. Back to gold rising as soon as Hong Kong opens – because the Chinese keep buying gold. Now gold showing series of higher lows off the March double-bottom. Best part is – virtually everyone (excluding us) wrongly positioned on gold. Hedge funds out (lowest net long gold position in over 2 yrs – just prior to big rally – with heavy shorts). Institutions with zero. Individuals investors totally demoralized (see sentiment indicators).
It’s Decision Time
Fred Hickey: For all those out of gold, it’s decision time. Wait a little longer for a higher high (over $1840) or buy now. I know that some of the hedge funds had planned to wait. But the gold miners are historically cheap today. Won’t get such bargains later on…
Billionaire Eric Sprott bought a 20% stake in a mining company
to find out which one click here or on the image below
Gold & The GFC
Otavio Costa: Gold has followed inflation very closely since the GFC (Great Financial Crisis). After the pandemic lows, it front-ran the rise in CPI and got ahead of itself. We are now on the other side of this. Gold looks fundamentally cheap and technically oversold while inflation continues to gain traction.
Gold Is Undervalued vs Inflation
Look For Gold To Move Higher
Graddhy out of Sweden: Have been saying for 5-6 weeks or so that Aug 9th looks pretty good as a major (weekly cycle) low so far. I have also said that day 36 looks good as a daily cycle low. Today it is breaking away from 10 day moving average above my important 1767 level. Expected move but great to see.
Gold Looking Much Better Technically Day
36 Continues To Mark Major Cycle Low
Graddhy out of Sweden: With today’s move, seeing it break away distinctively from 10 day moving average after solidly backtesting it for 4 days, we can be pretty sure that that false breakout below 21.81 was the major low, as suspected.
Silver Also Looking Like Major Cycle Low
Already Complete At Day 36
***ALSO JUST RELEASED: A Quick Note From Legend Pierre Lassonde On The Gold Market, Plus US Has Some Serious Issues CLICK HERE.
***ALSO JUST RELEASED: Man Connected In China At The Highest Levels Says Price Of Gold To Reverse Higher, Will Surge $450 CLICK HERE.
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