Stocks And Precious Metals Charts - Gold Chart Formation Targets 1550

The spokesmodels were unnerved with the rally in gold today, which was in no doubt in part due to the weakness of the Dollar, and the stress on the physical supply on the return of China to business.

Their concern was that it is unusual for gold to rally in what appears to be a safe haven move, with stocks also rising. Always the stock market, that is their major concern, their priority. The system is God, and damn the people whom it was designed to serve and support.

Stocks did back off markedly into the close after a rather robust showing during the day. We must put our best foot forward for the rest of the world after all.

Gold, in fact, has begun to flesh out a new cup, which if it succeeds and manages at some point to break out will target $1550 at a minimum.

As I noted in some posts over the holiday weekend, the long bear market in gold, which was sustained by managed selling of physical gold by central banks in order to manage the market has clearly ended around 2007. The price of gold began to rally a few years earlier in anticipation of this sea change.

And so now, after a long consolidation after the first leg of the new bull market, the price of gold appears to be attempting to begin its second leg, and move to take out the prior highs.

A higher price in gold is likely to be accompanied by social disruption and political uncertainty as one might expect on an examination of history.

And so I would ask that the reader restrain themselves from saying 'Be careful of what you wish for'. That is just another snarky way of assaulting the messenger, or more properly forecaster in this case.

If by some miracle we could have what a good person might wish for, rather than what one might see coming despite all their efforts, and warnings, our grandchildren might not be so likely to treat our legacy as anathema and damn us for our selfish foolishness and careless pride.

Have a pleasant evening.

(Click on image to enlarge)

1 2
View single page >> |
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.