Minimize

Welcome!

Gold vs the S&P breaking some key technical levels

Cory
September 6, 2017

Today Jordan Roy-Byrne and I look at the gold to S&P ratio as well as assess the continued weakness in the USD. For the gold:S&P ratio there are some significant breakouts that have occurred and are very close to happening. We also consider the potential of the US dollar continuing to breakdown and how that would impact the metals space.

Click here to visit Jordan’s site for more metals commentary.

Click download link to listen on this device: Download Show

Discussion
13 Comments
    Sep 06, 2017 06:18 AM

    That was very interesting. I enjoy listening to Jordan’s thoughts.

    I find it interesting how some of gold analysts – not referring to Jordan here – were talking / writing only last week about gold topping and about to pull back / go down into some kind of cycle low. $1270 and $1250 being mentioned.

    Then NK exploded a bomb over the weekend and gold shot up on Monday. You don”t need to be a rocket scientist – or a nuclear scientist – to work out the connection between the two.

    Now many of those same analysts have either conveniently forgotten their own words, or have re-interpreted them, and are talking about how this rise in gold was forecast all along, was in the charts, waves, etc.

    It is human nature I guess.

    But what I find annoying is just how many are refusing to acknowledge that North Korea exploding a nuke, and all the resulting talk of US action, has seemingly nothing to do with the big rise in gold.

    As I type this news is breaking that Trump has said some concillatory words about North Korea and gold has dropped – presumably no connection of course.

      Sep 06, 2017 06:39 AM

      According to Goldman gold is going up because of Trump and not Korea.

        Sep 06, 2017 06:20 PM

        Crazy.

          Sep 06, 2017 06:55 PM

          Either idea is crazy. It was simply time for gold to move. Sure, there’s probably a small dumb money NK premium right now, but there’s a new gold bull market is underway. At the same time stocks and bonds are expensive yet that’s not good enough for most because they don’t understand how markets function. Goldman Sachs boys know this but deception is an important part of their game.

            Sep 07, 2017 07:56 AM

            I agree Matthew. It was time for gold to start moving up again regardless of NK or the debt ceiling, or whatever other noise of the day is hitting the news wires.

            Gold started it’s new Bull market in 2016, consolidated those gains for a year, and thus the most likely outcome was a higher low (like we saw at $1204) and we’ve been in the next up-leg higher since then. Gold didn’t move from from $1204 to $1344 on just a little fat brat in North Korea 🙂

            The real issue is that so many didn’t get the memo that Gold put in the MAJOR Bottom back in December of 2015, and it was never going to go below that after the epic move up past significant prior peaks & troughs or key Moving Averages in the first half of 2016. However, instead of most people positioning in the metals and miners in July/early August (which is seasonally one of the best times to buy), then likely missed the boat once again, and are “surprised” Gold is doing so well….. but that is only because they don’t want to admit that gold has been in a new gold Bull since last year, and will be on it into 2018 and likely 2019/2020.

    Sep 06, 2017 06:20 AM

    Gold reached a one year high so investors will sell and wait for a good correction to just below 1300.

      Sep 06, 2017 06:09 AM

      Thanks Cory. Some good analytical points. I don’t trade Gold per say but have lots of exposure to mining stocks. If we begin a correction in either, I don’t plan on trimming or taking any profits until perhaps November. Think we have some good times ahead of us and don’t want to pick up the nickels now and miss out on the dollars down the road. JMO

        Sep 06, 2017 06:31 AM

        Yen manipulated up to the dollar. Triggers algos.

          Sep 06, 2017 06:33 AM

          Got it backwards. Yen down to dollar.

    Sep 06, 2017 06:16 PM

    A Massive Surge In GLD “Inventory”

    Yesterday saw the 2nd-largest one day surge in GLD “inventory” in the past five years. What does this signal, if anything at all?

    I think most everyone here knows how I feel about the GLD. It’s a scam.

    https://www.tfmetalsreport.com/blog/8543/massive-surge-gld-inventory?page=1#comments

    Sep 06, 2017 06:07 PM

    Anyone that thinks that we are NOT in a bull gold market is smoking something other than tobacco. I just went through my stock plays since January and the only place I am losing money on gold / silver is on DSLV, JDST, and DUST. The bull plays are where I have be raking it in (USLV, JNUG, NUGT). I am up net about $1200 for the year on my Scott and Robinhood accounts.

      Sep 06, 2017 06:50 PM

      That’s right and there’s a massive amount of QE that still is not reflected in the gold price. Gold has never been so cheap relative to the money supply.

      Sep 07, 2017 07:10 AM

      +1 Jason.