Loading ...Inflexion Point
I’ve posted a chart in the past that shows clearly gold can go up or down when interest rates are rising. It can go up or down when rates are falling. It’s less about the direction rates are going and more about expectations. If rates are rising, and everyone is confident that it’s a good thing and it’s going to achieve its aim – perfect, what’s the problem ? If rates are rising as some sort of panic measure, that’s different. How about where we find ourselves today ? As a reminder, this is what we were told to expect less than 12 months ago…
A path beyond 3%. Many have been warning for a very long time that it can’t happen for one simple reason. DEBT. It doesn’t matter until it does. Well, we’re there now – IT DOES MATTER. All of a sudden, just like that, everyone knows it. We’ve reached the point where rates can rise no more. The US would collapse under its own debt burdon. So there you have it. The Emperor has no clothes, The Fed has no bullets. The Dollar will suffer badly as a result, and gold will fly (the miners will mean-revert). All my own views of course, and you may disagree, but I suggest the facts speak for themselves.
I think we’re recently(40 yrs?) become accustomed to believing that gold reacts to what other assets or financial indicators do. I suspect we will soon see that reversed (and back to normal.) Once trust is lost in the ability of our financial masters to centrally manage the economy, all bets are off.
This is a weird ICL for gold. Technically it looks like it’s completed. We’ve had swing lows on both the daily and weekly cycles,yet the ICL is/was so mild so far that some are doubting whether that’s really all there is. Perhaps another indicator that we’re ready for blast-off.
It’s keeping us guessing CT. I was thinking $1240 area, but if that was it, gold is telling us just how bullish it is.
“The Dollar will suffer badly as a result” when you say suffer badly I am taking it as to be against real things and not other currencies?
I’m referring to the fact that the Dollar cycle bottoms in 2024, and the Dollar Index will not react well to the way things are unfolding in the US with regard to National debt to GDP ratio, and the Feds inability to use interest rates effectively.