Loading ...Time to Reassess?
Perhaps the new gold bull didn’t have this epic election “baked in” (as the media are wont to say).
If Trump succeeds in lowering the U.S. corporate tax rate, trillions could return to the U.S. If he gets rid of job-killing regulations, unemployment could dive. If he reduces the number of government workers, those poor folks would have to get honest jobs.
The current stock-market bull could very well accelerate.
The dollar could continue to go up as the U.S. becomes the safe-haven play … not gold.
So … is the gold bull dead?
Thoughts, everyone?
Edit: Today, GLD tonnage dropped from 955 to 941.
My take is that this is exactly the kind of bearish sentiment that we always see at major lows.
It is also what fuels the next leg up, IMO
Exactly – not there yet but getting close! Selling was too orderly most of today – need to see a little more panic action, IMHO!
I don’t see this as bearish. We are potentially seeing a real shift here in that Trumps infrastructure spend is already driving up yields which, if it continues, will turn real rates positive. Negative real rates have been the driving force of this baby bull.
Agree this post from Dan tonight sums this up…Silver is a better inflation metal than Gold..and that is manifesting already
https://traderdan.com/?p=14679
In another post he shows the yield curve rising which is bearish for gold…he is recommending a long silver short gold spread
Agree, $SILVER is looking good:
https://goldtadise.com/?p=385238
A lot of “if’s”, what is one of those “if’s” don’t occur?
Time to reassess? Hell yes. Very strange actually. My internal sentiment monitor says the feel trade is fading fast.
Markets are acting on what Trump MAY do or CAN do. Speculation and nothing more.
What is happening is a repricing of the BOND market. We all better pray that the rising yields don’t accelerate otherwise we all will have many more problems on our hands.