With the US dollar continuing to struggle, here are more bullish catalysts for the gold and silver markets.
November 17 (King World News) – Peter Boockvar: We talk a lot about the euro heavy dollar index (euro is about half the index) when measuring the direction of the US dollar, which today is a hair away from the weakest level since April 2018.
But, there has also been clear dollar weakness specifically against Asian currencies where today the Bloomberg JPMorgan Asia Dollar Index is rising (stronger Asian currencies) to the highest level since June 2018. The better containment of the virus, less of an economic contraction and thus a quicker rebound all are catalysts for this strength.
Food And Commodity Inflation
I expect further weakness in the coming year and continued strength in precious metals and which would be a boost to other commodities. The CRB Food index yesterday closed at a 15 month high and the CRB raw industrials index closed at an 18 month high. The only commodity missing from the rally has been crude and the vaccine will end that underperformance. I continue to like the group…
To listen to legend Ross Beaty discuss skyrocketing gold & silver, chaos
and collapse CLICK HERE OR ON THE IMAGE BELOW.
Speaking of the dollar again, against the pound it is falling to near $1.33 as it seems the UK is moving ever closer to a deal with the EU. Once signed I expect further strength in the pound. Remember, it was near $1.50 right before the 2016 vote. The Irish Foreign Minister yesterday said a deal could be had within two weeks but there is hope that there could be one even next week.
GOLD BULL CATALYSTS:
King World News note: A weaker US dollar, food and commodity inflation, are more bullish catalysts for the secular bull market in the metals and mining stocks. There are many more catalysts underpinning the bull markets in gold, silver, and the high-quality shares of the companies that mine the metals. Patience is required to get through the lengthy consolidation before the next major leg higher in gold and silver.
To listen to Egon von Greyerz discuss the shortages in the silver market and much more CLICK HERE OR ON THE IMAGE BELOW.
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