See Gold Price Rising On Risk Off Sentiment

See Gold Price Rising On Risk Off Sentiment

See Gold Price Rising On Risk Off Sentiment

$DIA, $SPY, $QQQ, $GLD, $VXX

Gold’s value will rise as central banks Key central banks keep trying to support economic growth with loose monetary policy

This year Gold price is up 25% to 1,326 oz, defying shortsighted forecasts that it would lose value as the Fed shrank the money supply.

The US Fed in December 2015 raised interest rates for the 1 st time in 10 years, and published estimates of 4 more hikes in Y 2016. But the central bank could not increase the cost of borrowing any further, including a slack job market, low inflation, weakening US and global economy, the US vote to leave the EU and the upcoming US {residential election.

The CME fed funds futures now the Fed a 52% chance of raising rates by 0.25% at its December meeting.

There are more market reassessments lurking to drive fiat (paper) currency (real rates) lower rather than higher.

So, anyone looking to preserve future wealth and purchasing power in a central-bank distorted ‘market’ should stop waiting for opportunistic entry points and start accumulating Gold in a more consistent, stable and regular manner.

Gold market analysts, including me. estimate that Gold will likely reach a new record within 5 years as asset bubbles collapse and drive investors into safe haven assets.

Many of us see a few thousand dollars of Northside as monetary policy without limits,including negative interest rates and direct asset purchases by central banks, debases the value of paper currency.

As some of the excesses in other asset classes get unwound, gold will perform very strongly. The “perfect storm scenario will mean that Gold will perform best when other classes are diving deep.

Thursday, the major US stock market indexes finished at: DJIA -195.79 at 18143.45, NAS Comp -49.39 at 5269.16, S&P 500-20.24 at 2151.13

Volume: Trade was heavy with about 910-M shares on NYSE

  • Russell 2000 +9.2% YTD
  • S&P 500 +5.2% YTD
  • NAS Comp +5.2% YTD
  • DJIA +4.1% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Neutral (-0.01) Neutral (-0.06) Neutral (0.00) Neutral (0.03)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (0.09) Neutral (-0.04) Neutral (0.12) Neutral (0.19)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.32) Bullish (0.33) Bullish (0.33) Bullish (0.29)
HeffX-LTN Analysis for GLD: Overall Short Intermediate Long
Neutral (-0.07) Neutral (-0.13) Neutral (-0.12) Neutral (0.04)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.30) Neutral (0.04) Bearish (-0.35) Very Bearish (-0.58)

Stay tuned…

The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

You must be logged in to post comments :  
CONNECT WITH