- The traditional Chinese New Year “firecracker rally” for gold may be a dud this year, but investors who followed my “buy into $1788 and sell some into $1966” recommendation are in great shape.
Click to enlarge this weekly buy and sell zones chart. The $1767 low and the $2089 high should be the new zones of interest for gold investors.- Gold could decline to $1767 or even $1671. If that happens, I will urge all investors to take buy-side action with physical market gold, silver… and the miners.
- What are the odds that it actually does happen? Well, Chinese gold prices have gone to a premium over London as of this morning, US election mayhem continues, and Goldman Sachs analyst Jeff Currie is predicting gold hits $2300 this spring and holds its ground.
- Also, Corona is still a problem. The vaccines appear to be cash cows for the drug companies, but only a short-term fix for the citizens. Mutation may be a new concern.
- So, I lean towards $2089 rather than $1767 as the next “order of gold price business”, but I want investors prepared to handle all potential outcomes on the gold market gridlines.
- 2021 will be the year of the ox for China, and that should also be the theme for the gold price; some volatility as democrat and republican combatants settle their views on the election with violence, but then new and bigger money printed handouts bring some calm to the storm.
- Because the calm will be oriented around more debt and money printing, gold should hold most of its gains. It did that in 2020, but I think 2021 will see even more “ox-like” action for the world’s mightiest metal!
- When gold is in an “air pocket” between the key buy and sell zones, as it is now between $1767 and $2089, there’s not a lot to do, and investors can use the time to look at other important markets.
- Please click here now. Double-click to enlarge this COPX copper stocks ETF chart.
- “Doctor Copper” is probably due for a pullback against the dollar, and so is the stock market, but that pullback can be bought in anticipation of (initial) “growthflation” from the government handouts.
- There’s a real danger that growthflation becomes stagflation by 2022, and that would see copper hold most of its gains, like gold.
- Please click here now. Double-click to enlarge this key silver chart.
- There is quite a big difference between the gold price action and the silver price action, and I will suggest that is because of imminent inflation.
- Gold has made a new all-time high against the dollar and broke out of a big H&S bull continuation pattern back in 2019. That’s because gold does well in both inflationary and deflationary times.
- In contrast, silver shines brightest when inflation becomes a real possibility. This awesome metal has only recently broken out from its base formation, and I think the breakout is mainly related to potential inflation.
- Silver also sits far below both its 2011 and 1980 highs and thus offers investors tremendous leverage to gold.
- In the inflationary environment that I am predicting begins this year, the price action for silver may look a lot like that for… platinum.
- Please click here now. Double-click to enlarge. Like silver, there is a big base pattern in play for platinum on the monthly chart. A breakout to the upside appears imminent.
- Please click here now. Double-click to enlarge. This is another look at platinum, using a quarterly bars long-term chart.
- A dip in the stock market could see platinum dip lower and form the right shoulder of an inverse H&S bottom pattern. Whether that happens or not, the key number to watch is $1200. A breakout above there ignites the upside fun!
- Please click here now. I like owning both physical metal and the ETFs. In the case of platinum, the PPLT Aberdeen ETF that I highlight here has decent trading volume, and it trades on the NYSE.
- Stoploss enthusiasts who want to buy right now can use $92 as their short-term line in the sand, but I suggest holding some positions with no stop at all.
- Buy more on any price dip, in anticipation of higher prices ahead!
Thanks!
Cheers
St
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