Post FOMC Round-Up
Interestingly, the announcement of no rate cuts, and probably none in 2020, and just one in 2021, resulted in gold advancing and the US Dollar falling. That’s more to do with market perception (QE4 is getting hard to disguise, and quite frankly, the suggestion of no cuts being required next year is, in my view, wildly optimistic). Just as important – rates can’t ever go back to anything like ‘normal’ without triggering economic meltdown. Gold knows this, and vis-à-vis all paper currencies, will continue to appreciate.
First up, my DXY chart, which just looks plain ugly. However, horizontal resistance is holding for now. My long term bearish view will only change if we break through the dome in the 99 area.
Next, what I see as the indicator which will tell us when it really is ‘game on’ for the PM sector. The point when silver begins to out-perform gold. It was breaking out, but interesting to see that has now become a wick on the candle, which is back below resistance (just).
The Bloomberg Commodity Index has bounced off the lower support on the channel which I’ve been following (as you know, copper has broken out, and is rising strongly).
And last, but not least, gold. What can I say ? Perfectly poised for a $200+ rally in the next 3 to 4 months. Confirmation comes when we break out of the current bullish consolidation pattern – we need about $1490 for that.
Happy investing Goldtent friends.
Well summarized. I agree next move will be +200$.
Cheers buddy.