With many people watching the tumble in the gold market, this is how we will know the price of gold has bottomed.
This Is How Gold Will Bottom
February 4 (King World News) – Fred Hickey: “US dollar rally” is the explanation pundits use to explain gold sell-off. Reality: gold soared to record highs in early August and we’re now in an extended correction. Dollar FELL throughout this 5-mo. gold correction. Gold correction from the record highs has to run its course.
What I’m Looking For
Gold correction will end once enough of the week-kneed (who are still hanging on) finally punt on gold. We’re getting closer. Reality is this is just a correction in a major bull with conditions ripe for much higher levels: deeply negative real rates, a bout of inflation ahead.
Despair and fears of deeper losses. It’s what I’m looking for – we need more of it for a bottom…
To hear Sean Boyd discuss $3,000 gold and the big game-changer
for the gold market CLICK HERE OR ON THE IMAGE BELOW.
Gold Bull Catalysts
That bout of inflation will be driven by year-over-year comps (starting in weeks), soaring commodity prices (look at oil, food, industrial metals), massive (record M2) money supply growth, Biden stimulus and economic reopening as COVID cases fall. Will lead to even deeper negative real rates.
Meanwhile, Fed will sit on its hands and NOT raise rates/taper their massive money printing due to fear of popping enormous (record-sized) asset bubble’s they’ve created. Record twin deficits (budget & trade) and deeply negative real rates – perfect conditions for gold bull to resume.
Fitzpatrick weighs in…
Gold Testing a Pivotal Support Range
Top Citi analyst Tom Fitzpatrick: After gold recently completed a small double top formation that targets a move to $1788, it has drifted lower to test the pivotal support range at $1791-$1811, which includes:
$1791: 55 week MA
$1796: October 2012 high
$1803: November 2011 high
$1811: 76.4% Fibonacci level of the fall from $1959 to $1765
If we see a daily close below this range, we should expect a further decline towards the next good support range at $1765 (May 2020 high and Nov 2020 low.)
Gold Testing a Pivotal Support Range
Note that a weekly close below this range would paint a much more bearish picture on the precious metal given the 55-200 week MA set up. However, for now, we should focus on how it trades around the big support range and come back to reexamine if we get that weekly close.
Also of importance…
Maple Gold Mines Ltd. has closed its previously announced 50-50 joint venture transaction with Agnico Eagle Mines Ltd., which combines Maple Gold’s Douay project and Agnico’s Joutel project into a consolidated land package of approximately 400 square kilometres. The closing of the transaction follows the signing of a binding term sheet between Maple Gold and Agnico that was previously announced on Oct. 8, 2020.
“The closing of this transaction represents an exciting new chapter for Maple Gold as we move forward on the Douay project with the best joint venture partner we could ask for.
We are excited to kick off the JV’s maiden drill campaign shortly to expand the established gold resources at Douay and will continue to test regional targets for new discoveries, all with the aim of establishing an exciting new gold district in Quebec’s Abitibi gold belt.
We also look forward to building on our relationships with the local communities around the combined land package, including the first nations.” — Matthew Hornor, CEO of Maple Gold
JV highlights:
- Maple Gold contributed its 357 square km Douay gold project, which has an established National Instrument 43-101 mineral resource estimate of 8.6 million tonnes grading 1.52 grams per tonne Au for 422,000 contained ounces of gold in the indicated category and 71.2 million tonnes grading 1.03 g/t Au for 2.35 million contained ounces of gold in the inferred category using a cut-off grade of 0.45 g/t Au for open-pit mineral resources and a cut-off grade of one g/t Au for underground mineral resources (1).
- Agnico contributed its 39 square km Joutel project, which hosted Agnico’s past-producing Telbel mine (reclamation area and associated liabilities are excluded from the JV).
- Agnico will provide an aggregate of $18-million of financing over four years for exploration expenditures at the Douay and Joutel properties, which will be allocated based on management committee budgets. Agnico and Maple Gold will contribute proportionately for expenditures thereafter.
- Agnico and Maple will jointly finance an additional $500,000 in exploration of volcanogenic massive sulphide targets located on the western portion of the Douay project.
- Agnico to contribute its technical expertise to the JV through joint operatorship (Fred Speidel, Maple Gold’s vice-president of exploration, will act as the initial general manager of the JV).
- Agnico will support Maple Gold in its pursuit of third party project financing for the development phase.
- Maple Gold and Agnico have each retained a 2-per-cent net smelter return royalty on the property that they contributed to the JV, each with aggregate buyback provisions of $40-million.
Below is a short video update
To listen to Gerald Celente discuss why gold and silver will surge strongly and what surprises to expect in 2021 CLICK HERE OR ON THE IMAGE BELOW.
KWN has now released an audio interview with Alasdair Macleod discussing the shortages in the London metals market and you can listen by CLICKING HERE OR ON THE IMAGE BELOW.
Also released! Gold Plunges $50 But Greyerz Says There Are Major Shortages In The LBMA And Futures Markets CLICK HERE TO READ.
Also released! Truly Mind-Boggling Chart, Sprott Says They Have 100+ Million Ounces Of Physical Silver, Plus Unleashing Reserves CLICK HERE TO READ.
Also released! Sprott Asset Management: Silver Headed To $35, Above That Expect Price Spikes To $47-$119 CLICK HERE TO READ.
Also released! JP Morgan And Silver, The Great Rotation Into Gold & Silver, And Look At These Remarkable Charts CLICK HERE TO READ.
Also released! After Today’s Pullback It Is Important To Look At The Big Picture For Gold & Silver CLICK HERE TO READ.
Also released! WHAT TIMING: Curiously JP Morgan Downgrades Silver Stocks, But This Is Even More Stunning CLICK HERE TO READ.
BULLISH ON SILVER: To listen to Rob Arnott, the man who helps oversee $160 billion, discuss why the silver market could be the next to skyrocket and much more CLICK HERE OR ON THE IMAGE BELOW.
To listen to Alasdair Macleod discuss the fact that there is virtually no liquidity in the London silver market which may lead to a massive short squeeze in silver as well as the Reddit and Robinhood army of traders entering the silver market CLICK HERE OR ON THE IMAGE BELOW.
Also released! Reddit WallStreetBets Group Unleashing Silver Price, But This Will Trigger Real Panic Into Gold & Silver CLICK HERE TO READ.
Also released! SILVER: WHAT A DAY! Look At Who Just Predicted We Will See $2,500-$4,000 GOLD And $57-$131 Silver CLICK HERE TO READ.
Also released! SILVER PRICE SOARING ON SQUEEZE: $50 Price Target Just Issued But Look At This Surprise CLICK HERE TO READ.
Also released! Greyerz – Macleod Is Right, There Is NO LIQUIDITY IN LONDON And Bullion Banks Are Short 100 Million Ounces Of Silver CLICK HERE TO READ.
Also released! Robinhood Silver Traders May Break The Comex And Serious Hurt Bullion Banks CLICK HERE TO READ.
Also released! Central Banks Created Niagara Falls Of Printed Money And Debt, Gushing Chaotically All Over The World CLICK HERE TO READ.
Also released! NO SILVER LIQUIDITY IN LONDON: This “Could Destabilize All Gold & Silver Contracts” As Reddit Silver Short Squeeze Continues CLICK HERE TO READ.
Also released! REDDIT TRADERS TARGET SILVER: Man Who Oversees Nearly $160 Billion Says Silver May Be Poised To Skyrocket CLICK HERE TO READ.
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