What’s Next-Gold (Part2)
Yesterday I presented two possible bullish scenarios for what happens next for Gold. So far, so good. We have an inverse H&S formation that will either finish the 7 day buildout of the right shoulder, or breakout and run after tomorrow’s FED announcement. To participate, the way to play if you don’t already have long gold positions is to take an initial position before the FED announcement. If they don’t get more doveish, triggering the BO, then the ensuing pullback should continue the buildout of the right shoulder presenting slightly lower prices to add to your position. However, if they do push taper into next year, at the earliest, it is quite likely gold will respond by breaking up to and thru 1840. I suggest you want at least a modest position in case that takes place, while still holding off on a larger position in the event the right shoulder buildout takes the better part of this week and next.
Since TPTB know we watch these patterns, it’s almost a 95% chance that pattern will be invalid and they will kick us in the balls one more time! That being said, stack on because paper price is meaningless
sprott has been on the move,
https://www.tradingview.com/x/wThNqWav/
True, as the essay by HSP outlined. However Gold is at a Win, Win, threshold. FED does nothing, stock market sells off and Gold goes higher. FED pushes taper off the table to save the stock market(only temporarily) and Gold goes higher.
I would agree that gold being pressed down a lot lately could lead to a bounce up… sure. But here is a question, what if the FED does indeed push taper talk (it’s of course only talk) into next year and Powell mentions his “tool box” at least 50 times and of course mentions the FED stands by to provide sufficient “liquidity” for any situation. The market loves it, big rally… therefore its risk back on, doesn’t gold go down in that scenario?
No, because what has been weighing on gold and silver these last few months has been the market’s acceptance that taper would begin soon(even though it would start slowly). If the stock market is rescued by taper being pushed off, dollar falls sharply and gold and silver rally. I believe we are at the point where the FED becomes irrelevant(at least as far as gold and silver are concerned.)