Hemke expresses optimism about gold and silver prices, citing their resilience despite recent fluctuations, dismissing extreme downward forecasts, and highlighting the role of hedge funds and bullion banks.
Bloomberg reported U.S. January retail sales and weekly jobs claims came in softer-than-expected and gold got a nice lift at the end of the week, but not enough to flip in a positive rise in price like the other precious metals.
Sorry, pivots only happen in policy not in whispers about remote hypothetical possibilities months into the future, so NO PIVOT. Nada one. Not even a slow curve in the general direction.
Speculators won’t go long and commit to a position there until silver breaks above $30 and gold pushes through, and holds, above $2100.
Due to strong demand coupled with a stable gold price, assets under management by Chinese-based gold ETFs rose by $113 million to $4 billion in January. An all-time high.
Where the rot is probably greatest, but more veiled for the moment, is in the operations of organized capital, the banks and money systems, including financial markets.
Gold fell then bounced back and silver leaped. Gold needs to take out $2,050, $2,060, $2,080, and $2,100 to convince us we are moving higher.
Historically, when the copper-gold ratio and the 10-year yield diverge, the 10-year tends to follow the ratio. For example in the third quarter of 2022, yields moved higher while the copper-gold ratio moved lower.
I am close to getting a major SGS system buy signal for the precious metals sector and charts like Barrick are definitely impressive! We will be significant buyers of the miners if we get the signal.