I believe that gold will reverse to the upside this coming week. What happened on Friday is that, with the markets starting to look really fragile, the Bank of America came riding to the rescue saying that the Fed was “going to exercise yield curve control” or words to that effect, meaning that it will attempt to cap shorter-term yields like the 10-year.
“The gold standard did not collapse. Governments abolished it in order to pave the way for inflation. The whole grim apparatus of oppression and coercion — policemen, customs guards, penal courts, prisons, in some countries even executioners — had to be put into action in order to destroy the gold standard."
A bottom in the Gold market? When Gold bottoms, everything else will bottom likely as well.
Gold bull and bear markets is the theme of our opening piece this week. And what does all this money being pushed into the financial system mean? Hyperinflation as some are calling for? The U.S. job numbers were much better than expected. But were they? Underneath there is rot.
No one said it would be easy to get short at the top. This bull market is proving especially challenging to fade because the herd knows how grotesquely overvalued stocks are.
As you well know the PM complex has been trading at a very important inflection point for the last month or so looking for the next important move either up or down.
I mean, have you ever seen a crash when everyone, and their mother, grandmother, uncle, aunt, and aunt’s cat knew it was coming?
A bounce in an overall bearish market. $1,739.10 needed to break through to change the trend.
Spot gold. View: Key support is at $1682.30. Key resistance is at $1717.10.
