There are two big factors with respect to gold’s performance relative to fiat: one is whether BRICS introduces a gold-backed currency. The other is the impact of a Fall market crash.
Yen (USD/JPY) price trend impacts all asset classes. USD/JPY is trading around 146.40. This is the key reason for the rise in bond yield and sharp rise in the USDX and falling gold and silver.
You have to buy at the right time in metals to make money. Especially in the miners; they are trading vehicles, not long-term holds. Long-term holds are physical gold and physical silver.
Five major fundamental and technical events need to occur for me to issue a major buy alert for gold and silver stocks. The good news is that all five events are in play today.
In the gold market, you're staying underneath the 18-week moving average of closes (MAC). That's an important thing. It keeps the bias of the market down.
If there is a bright side to this scenario, it lies in the implication that a debt deflation more destructive than consumer inflation we are likely to experience is a while longer in coming.
There is both bullish and bearish potential for silver. Note the negative divergence between gold and silver as gold soared to new highs. It is a potential bad sign.
The firming Dollar suggests the Fed’s foot is “expected” to stay on the interest rate pedal. The Bond, Euro, Gold, and the S&P 500 (BEGOS) Markets are down except for Oil.
