Gold achieving new nominal all-time-record highs sooner or later will greatly rekindle investment capital inflows, accelerating this upleg as traders chase gold’s gains.
Positions as of 12 September, 2023
If the rough evening star formation on the dollar holds through next week’s FOMC meet, it will be time to get excited about gold!
The gold market is down about a half of a percent, which isn't much considering how strong the dollar has gotten.
I prefer a buy-on-dips strategy as long spot gold trades over $1890-$1895 zone and spot silver trades over $21.90-$22.20 zone till next week.
A profound change has come upon the macro. A nearly four decade long trend is done, kaput. A system saturated with inflationary policy is no more.
Gold is still trending downward and keeps slipping away. The next support line is the 1915 to 1920 area.
To buy more gold, I would need to see a price of $1850. For silver and the miners, I would need to see gold trading at about $1810.
All eyes on the CPI. The market will react in a big way to the CPI increase, and the question is: what does it do to the Fed's thinking for next week?
A percentage of your assets in cash now puts you in a position to scoop up incredible bargains in precious metals in the event of a crash.
