Gold Thanks The Fed And 'Tis Full Speed Ahead!

 

First things first: we were a week premature in writing off Gold re-attaining 1800 "near-term". For some two months, we'd anticipated 1800 Gold: and we (finally) got it, price settling yesterday (Friday) at 1832 (GLD).

At this writing a week ago, Gold "near-term" was confirming a negative turn across various tried-and-true technical studies. But there's nothing like a little Federal Reserve concern over "stretched valuations" of assets to rapidly whirl price right back 'round to the upside. And in the process of sporting its best up week in half-a-year (26 weeks since that ending 06 November), Gold's weekly parabolic trend flipped from Short to Long as we see here: 

Moreover in going back to our March 13, missive entitled "Higher Gold from Here" (price then 1726), we'd penned this key paragraph, now oh so apropos:

"...We know, and you know, that Federal Reserve Chairman Powell, his Fed Presidents and FOMC all know, the stock market is horribly due for a massive blow. And the key unmentionable in the fertile minds of every one of them is exactly what Stephen Stills admitted to the masses at Woodstock pre-dawn on 18 August 1969: "We're scared s**tless." And the FedFolk cannot prevent it..."

And this past Thursday as stated by FedGov Lael "The Brain" Brainard on behalf of the Financial Stability Committee (great oxymoron): "The combination of stretched valuations with very high levels of corporate indebtedness bear watching because of the potential to amplify the effects of a re-pricing event." (For you West Palm Beachers down there, a "re-pricing event" is a stock market crash). That got Gold to 1800.

Then on Friday, StateSide Payrolls came in at "just" 266,000 versus the consensus for one million (a -73% consensus miss). That got Gold to 1844.

More alarming however was to then watch the stock market climb rather than nosedive!

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