WW3: Gold Prices Could Rise to $10,000 oz
$GLD, $SLV, $USD, $DXY, $AUD, $JPY
Sunday, best-selling author James Rickards warned that Gold is poised to spike to 10,000 oz because of global political instability.
Personally, I expect Gold attack the resistance at 1,500 in Y 2018. And not be shocked by a run that brings it to 1,750 in that frame
Gold is up early Monday in Asia as NKorea’s latest nuclear test provoked the usual quick shift to safe havens.
Gold at 1337 moved higher Monday, and trading above its interim resistance of 1335. Gold is not overbought yet, a quick rally could be seen towards 1350 and a break there puts 1375 in view.
Silver at 17.94 broke its resistance at 17.80 and is tapping resistance at 18.00.
Last week I wrote that Gold and Silver both are out of their short term Bearish channel with a strong Bullish momentum as the supports of 1280 and 16.90 are solid in here.
Sunday, NKorea conducted its 6th and most powerful nuclear test yet, which it said was of an advanced hydrogen bomb for a long-range missile, prompting the threat of a “massive” military response from the United States if it or its allies were threatened, as I reported here.
Speaking outside the White House after meeting with President Donald Trump and his national security team, US Defense Secretary James “Mad Dog’ Mattis (USMC Ret.) said President Trump asked to be briefed on all available military options.
Markets continue to treat each NKorean escalation is on as traders are buying the Japanese Yen, Swiss Franc, US Treasuries, Gold and Silver, while selling AUD (Aussie).
Overall US Dollar weakness still prevails for now .DXY at 92.65 trading below major resistances near 92.80-95 and 93.37. But, be careful about chances of a break of this trend.
Assuming the worst on the Korean Peninsula has not proven to be a winning trading strategy this year, as investors seem reluctant to price in anything more severe than trade sanctions, and the absence of another ‘Fire & Fury’ Tweet from President Trump.
President Trump is likely going to push to impose harsh sanctions on Chinese banks that continue to provide a financial lifeline for NKorea. While sanctions have been imposed on small financial institutions already, the biggest banking connections remain large state-owned Chinese and Iranian Banks.
“If the President goes after the larger Chinese banks, there is a chance that the Chinese will both respond by selling large amount of its foreign reserve of US Dollars and by doing so weaken our currency,” says Andrew Packer, author of a new gold book to be released in December, “Trump $5,000 Gold: How to Profit From Gold’s Next Explosive Rise!”
President Trump, according to Mr. Packer, “would love to further weaken USD Vs the currencies of our biggest trading partners to reduce what he has called ‘massive trade imbalances.’”
Mr. Packer, argues, “When you consider both the likelihood of more downward pressure on the USD resulting from the NKorean, Chinese, and US political concerns, and the Fed’s sluggish action on raising interest rates, the upside for Gold looks very likely.”