Loading ...A Trifecta of Factors Pertaining To Gold
I have been bullish on gold, especially since it’s triple bottom carved out over a period from late Sept. to early November, as I have expressed in a number of posts along the way. I recently posted my targets for this first quarter of 2023 which includes reaching $2000 and going on to new ATH’s above $2100 this year. Today is only the first trading day of the year and my first target of $1850 has already been reached. Let’s see if we get the breakout by Thursday which was the “highest probability day in my suggested window”. Everything is in gear, the fundamentals, the technicals, and particularly the chart. The cover stories are about to kick in as well. When I mention cover stories, as I have stated many times, markets do what they are going to do but people need an answer, or excuse for why things happen and why they happen at a particular point in time. While these events or news stories are often catalysts, they really are just accelerating what was going to happen anyway. Yes, they sometimes make it happen quicker and or sooner but the fundamentals and technicals were going to get you there anyway, eventually. I believe it is only a matter of time before gold reaches the neighborhood of $3600 as posited by Zoltan Pozsar. His thesis about Russia offering oil for gold at $60 for two barrels may or may not play out exactly as he laid it out but the fact that the BRICS are going in the direction of pricing commodities including oil in gold and tying it to the Chinese currency all fits in with the changing landscape of a competing reserve currency pricing mechanism to challenge the US dollar. The second contributing factor in the rise of gold to new highs and eventually at least $3500 or so per ounce, is that Russia is about to step up it’s offensive in Ukraine, since all of their efforts to negotiate a settlement have been rebuffed by the war mongering US. Throw in a likely move by China against Taiwan and you have the Trifecta towards getting gold to such heights. It is headed there on the fundamentals and technicals but the world needs a cover story and catalyst. It is only the first trading day of 2023 and the rise has just begun.
I remember following WTIC a few years ago and noticing that news events would upset the price trend for about a day and the price would return to where it was. Or demand had increased but supply had increased more. Every day was like an election night where every candidate had both a victory speech and a concession speech prepared beforehand waiting to see what actually happened. Even during the Brexit vote the price for gold only fluctuated within its existing channel. Nothing ever seemed to move the market except the market itself.