QE To Infinity – Rising Stock Markets – Great For PM’s

The Time Has Arrived – No More Pretence

I posted 6 months ago saying ‘You know it, I know it, Wall Street knows it, the Fed knows it. This is the beginning of the end for rate hikes, and the end of the beginning for the PM rally to come.’

https://goldtadise.com/?p=438017

Today, Fed Chair Powell has confirmed this to be true. In fact, what he said amounts to an admission that QE to infinity is the new normal

https://www.zerohedge.com/news/2019-06-04/dovish-powell-slams-yields-dollar-he-opens-door-more-unconventional-measures

If this doesn’t scare you, it damn well should. It’s an admission that the Dollar will be sacrificed in a fatal, flawed attempt to paper over the cracks and keep the stock market afloat. The resulting crisis will (in my view) dwarf everything that has come before it.

This is why gold is breaking out of 5/6 year basing/consolidation patterns worldwide. When this sinks in, over the next few weeks/months, the Dollar will nosedive and PMs will catch fire. That is my prediction.

The Dollar & Gold

Combined in one chart…

 

Maybe A Little Premature ?

We need to see how things develop this week before getting too excited

US Dollar – Crucial Week

Unless we get a sharp reversal this week, I believe the Dollar is going to drop. Hard.

 

Edit – I think I’d be just as bearish on the Dollar if it turns back up and makes a final high just beneath 99. Total ‘exhaustion’ would have set in by then (in my view). The Fed has run out of policy. My own view is that rate cuts are coming (that’s always been my view). The US economy has not reached escape velocity. More ‘QE’ radical monetary policy/madness is coming. Trade wars won’t help the US either (or anyone for that matter). Again, it’s my personal view, but I believe the charts are really telling us what is coming during this Dollar/Gold cycle. Currencies across the globe are falling fast vis-à-vis gold, with breakouts all over the place. $gold will (I believe) follow suit.

 

Going For The Golden Hat Trick

Gold Shining In The UK

Dollar Bulls In Trouble ?

Something to keep a close eye on this week. A weekly close below this bearish rising wedge would be very, very bad at this point in the Dollar cycle.

Silver Has Finally Broken Out…

…from this years bullish falling wedge

Disappointment Ahead ?

Well, we’re all used to it by now. Whilst gold has clearly broken out in some currencies, it’s all eyes on $Gold for me now. The first test seems to be in the $1335-$1340 region. As I’ve said so many times – nothing changes until support or resistance are broken.

Gold Breaking Out Globally

Whilst the Trump state visit here in the UK gets underway, amidst mounting global trade tensions and a developing banking crisis, gold is quietly doing its thing. Funny how the gold and Dollar cycle knew this was going to happen years/decades ago.

In Oz, we are making new all time highs at the start of this new bull leg…

In Canada, the breakout is now taking place…

Here in the UK, the party is just getting started as well…

The US Swiss Franc is following the rest down the toilet…

The US Dollar is approaching its first turd in the pipe, but should squeeze past and continue down the ‘U bend’ into the sewer…

It may be obstructed for a while, but I’m confident it’ll join the rest before too long.

My Dollar Outlook

From Investopedia…

The current US Dollar chart…

 

Zooming out a bit…

$100-$200 Gold Rally ?

During the entire basing process over the last 6 years or so, the Stoch indicator regularly hits a very low reading and turns up. EVERY time this results in a good rally. $100-$200 is normal.The bullish wedge has been broken to the upside. Even a historically small $100 rally would take us through upside resistance. Norvast has made me question myself – and for very good reasons. I’m going to be intrigued to see where we go from here.

GDX/GDXJ/HUI

Just the charts…

US Dollar Still Defying Gravity

Kirkland Lake – For Marcus

Gold Silver Ratio

A rising GSR doesn’t necessarily need to strike fear into the heart of goldbugs. The blue line is the GSR…

Silver

I think an upside breakout is close

Palladium Has Broken Out

Fibonacci and his 0.618 retracement level strikes again

Is This It ?

Or is it another false dawn ? Remember my earlier comments. Firstly this was/is a bullish descending wedge terminating on the curved base or ‘bowl’ support that has been building out for 5 or 6 years. It also leads down to the CRITICAL support in the $1220 region. Secondly – nothing fundamentally changes until we fall below the $1220 support region OR break above that $1350-$1400 overhead resistance zone. Deputy chair of the FED has acknowledged they are open to rate cuts, and the trade wars aren’t going away. It’s hard to bearish on commodities at the moment, and gold/silver are so beaten down and unloved that I believe risk/reward is heavily weighted to the upside.

Gold in JPY

Perfectly poised for a breakout…

Gold in AUD

On the verge of greatness…

Gold in GBP

Attempting a very important breakout

Is Silver About To Lead ?

Chart Number 1000

This is my 1000th chart on goldtadise. Following the discussion about Savage and Graddhy earlier on, I’ll be clear – I’m no gold bull. I follow the charts. If support goes on this log chart, my attention turns to the linear chart I posted a day or two ago. Support lies somewhere near $1250 on the ‘golden bowl’ and somewhere near $1220 on the long term uptrend line. Above that, I’m bullish. Below that, I’m out. False moves at pattern completions are common – a final ‘shake-out’ if you like. There’s no need to mock it – it’s a simple fact. I agree it’s foolish to hang on when the evidence is no longer there. I have plenty of respect for both of them, and anyone else who gives their work freely and openly. We all have a mind of our own, and can filter out whoever we wish. IF price advances up beyond the apex in the $1350 region, we have a false breakdown and an around the apex move. Feel free to ignore 😉

Gold Bear ?

How about the worlds most populous nation…

 

Gold Bear ?

Not here either…

Gold Bear ?

Not here…

Time To Focus

We’re just about there, so it’s time to watch this thing VERY closely…