- I’ve suggested that gold investors need to be prepared to watch gold dip below $1800 (and perhaps as low as $1566-$1450) before an enormous rally towards $3000 gets underway.
The dip is in play, and the big question is… what’s the cause of this dip?- Well, Indian buying has faded, as it always does after a strong rally. Also, some of the global supply chain issues have been solved, even if just temporarily.
- Please click here now. Double-click to enlarge this shipping cost chart.
- Any rally needs a rest, and bigger rallies (500%-700% in this case!) need a bigger rest.
- The Trump inspired “growflation” was created by the borrowed and printed fiat money his administration put into the hands of mainstream America.
- Biden has chosen to focus on indirect stimulus. That doesn’t have the same effect on GDP or inflation as direct handouts.
- The Biden approach is arguably even more inflationary than the Trump approach… but over a much longer period of time.
- For now, the growflation money has dried up, no more is coming, and so GDP and inflation are in a lull… as is the price of gold.
- Please click here now. Double-click to enlarge this GDX swing trade chart.
- I highlight the Galactic Swinger newsletter swing trades with NUGT and DUST. The latest gold price swoon shocked a lot of investors, but not our subscribers.
- The complete gold investor wisely includes an array of investments (bullion, miners, ETFs, options, and futures) and…
- Investors may also be wise to employ a diversified array of strategies for each investment.
- Please click here now: https://galacticupdates.com/wp-content/uploads/2021/11/2021nov23crb.png Double-click to enlarge. The CRB index appears to be completing the first phase of its long-term move higher.
- Note the overbought positioning of the RSI and Stochastics oscillators.
- It’s time to book profits as the CRB approaches significant overhead resistance.
- Next, please click here now: https://galacticupdates.com/wp-content/uploads/2021/11/2021nov23oil1.png Double-click to enlarge. While oil is not as overbought as the CRB, Biden’s decision to release strategic reserves may cap this rally too.
- A pullback towards Fibonacci support at around $55 seems reasonable, especially given the price lulls appearing in other sectors of the inflation trade.
- Please click here now: https://galacticupdates.com/wp-content/uploads/2021/11/2021nov23bit1.png Double-click to enlarge. Bitcoin is a newcomer to the inflation trade, and it’s also in a lull, as I predicted it would be from the $66,000 area.
- I expect government CPI and PPI reports to follow these inflation trade assets into a lull.
- What does this all mean for the gold and silver miners? For the likely answer, please click here now: https://galacticupdates.com/wp-content/uploads/2021/11/2021nov23goau.png Double-click to enlarge this GOAU chart.
- As the lull in inflation intensifies, GOAU could trade a bit lower and make a double bottom in the $16 zone.
- Investors should use the right shoulder low of $17.74 as their beacon; if GOAU stays above that low, what’s happening is likely just a simple expansion of the inverse H&S pattern.
- To view the potential expansion, please click here now: https://galacticupdates.com/wp-content/uploads/2021/11/2021nov23goau2.png Double-click to enlarge. GOAU could be building the right shoulder of a bigger inverse H&S pattern, with a blast through the neckline on track to happen just in time to ring in a new golden year!
Stewart Thomson
Graceland Updates
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