With the Dow tumbling 600 and the Nasdaq plunging over 3.5%, James Turk told King World News there was a major breakout in the gold market today as counterparty risk continues to rise across the globe.
Important Breakout Today
May 13 (King World News) – James Turk: “There was an important breakout in gold today, Eric. A rally in gold – and silver too – are long overdue. So today’s action could be the start of something significant…
To listen to Doug Casey’s just-released KWN interview discussing his prediction of financial and economic chaos and a panic into gold CLICK HERE OR BELOW:
This chart of the daily spot price of gold in London clearly illustrates my point. The downtrend line that has confirmed gold since its mid-February high has been hurdled.
Gold Has Finally Broken Out On The Upside!
Gold is now once again facing the $1,300 resistance level, which I expect to be hurdled soon. Importantly, once that level is broken, it will be confirming the resumption of the gold rally that began last summer from below $1,200.
Gold Coiling Before Assault Of $1,365 Level
Gold remains on track to break above long-term resistance around $1,365 some time this year. And it could happen quickly if investor nervousness grows, which I think is likely.
Here are some of the more significant hot spots of potential trouble:
– weak European banks struggling to cope with bad debts and a weakening economy,
– crude oil prices over $60 per barrel pushing up inflationary pressures,
– the trade war with China turning into a financial war, with China dumping US Treasuries.
Counterpary Risk Is Rising Across The Globe
I could go on by adding other items, like the vulnerability of the global banking system as a result of massive derivative positions, but I think my point is clear. Counterparty risk is rising throughout the globe. That’s the reason Bitcoin is doing so well. Money is exiting the financial system so investors can preserve their wealth from bank and bond defaults. But the best antidote to counteract the poison of counterparty risk is physical gold and silver.”
***KWN has now released the powerful audio interview with legend Pierre Lassonde and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***Also just released: Are Banksters Moving Aggressively Into Gold, Silver And Mining Shares? CLICK HERE TO READ.
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