- Western mainstream media’s narrative for gold is on life support. The story told is that massive debt doesn’t matter, another bungled war doesn’t matter, and a collapsing SPR doesn’t matter.
- The narrators say all that matters for gold is that America’s biggest fiat money soup kitchen (the Fed) might raise rates a quarter point, and that’s incredibly negative for gold.
- This childish narrative has terrified and demoralized amateur gold investors and leveraged funds… so they aggressively sold gold, silver, and miners into the recent $4100-$3900 buy zone lows.
- Oil surged $4/BBL yesterday… and gold surged too.
- Note the bull wedge breakout for oil, and the substantial base pattern for gold.
- The US government is running out of debt-funded missile interceptors for their bungled war in Iran, and stock market investors (price chasers?) are continuously told that a markets-enhancing “deal” is imminent, with US forces in “total control” of Hormuz.
- If they are in total control, why are tanker transits near zero… and why is gold beginning to rise alongside oil?
- Double-click to enlarge this SPR “chart of horror”.
Some key investor considerations: The debt really is a problem, and the oil shortage can’t be fixed with rate hikes and deals.
- It’s taking a lot more time than silly government officials expected for thousands of new missile interceptors to be built and loaded onto the Navy’s ships. The bottom line:
- Savvy citizens should ignore the Western media narrators and get heavily invested in gold.
- Gold has arrived at both horizontal and trendline resistance in the $4400 zone.
- Stochastics is also becoming overbought.
- At the same time, the CPI and PPI inflation reports are set for release Wednesday and Thursday.
- A myriad of gold stocks are up 20%-50% from my key buy zone at $4100-$3900. In a nutshell, it’s time to book partial profits… while holding core positions with an iron hand.
- This is an isolated view of the key weekly chart 14,5,5 series Stochastics oscillator.
- For gold, it’s arguably the greatest technical indicator of them all.
- Clearly, there’s room for Stochastics to surge (along with the price). The target zone of the short-term base pattern is the big resistance zone at $4900-$5000. Silver bullion and mining stock enthusiasts who acted at my $4100-$3900 buy zone can plan on doing more profit booking there.
- While silver and the miners can be “traded” to make nice fiat profits, gold is by far the world’s greatest currency. Unless there’s a dire emergency, selling gold for floundering fiat is an act of madness.
- Double-click to enlarge this exciting CDNX line chart.
A massive bull wedge is in play and MACD (20,40,10 series) suggests a breakout is imminent. Investors who acted in my previous buy zones (and the latest one at CDNX 850/gold $4000) are in great shape.
- Junior mine stock investing isn’t for everyone, especially with size, but as this gargantuan gold bull era rollout continues, these miners look set to outperform everything!
- Double-click to enlarge this stunning GDX daily chart.
This incredible ETF has surged about 28%… in just a few weeks!
- Stochastics and RSI are now both overbought, so partial profits can be booked on buys done into the lows.
- Basis the weekly chart, the senior miners have a lot of room to run.
Stochastics is now out of the oversold zone and sporting a crossover buy signal and the MACD histograms are surging.
- If inflation rises a bit after the release of the CPI and/or PPI reports, Western media will drag out their silly gold-rates narrative. Any dip in the metals market this week caused by their statements is likely to be very short-lived. Have a golden day!
Thanks! Cheers
Stewart Thomson Galactic Updates
