Jordan Roy-Byrne – What Do The Current Macro Trends Towards Recession Mean For Gold And US Equities?
Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us to review the developing macroeconomic data and how that may shape the severity and timing of when larger recession will hit, and how this well affect the precious metals sector. If we see a soft landing in the near-term, pushing the recession out to 2024, then this would prolong the breakout of a true secular bull market in gold, and PM mining stocks.
Since another key part of the equation for gold to confirm a true bull market in real terms, is for the eventual divergence from the general US equity markets, we also get Jordan’s technical outlook and thoughts on how the general equities are currently setting up for the medium-term.
Good comments Larry, on the eventual loss of faith in fiat currencies. So far that hasn’t happened in the greenback, but as the BRICS are working towards getting around using the petro-dollar, and finding new trading alliances with other nations, then they’ll have less use for dollars. As many if those dollars are eventually “returned to sender” then it could cause a cascading effect of lower valuations in the buck.
For the last year there has been a very tight inverse correlation (sometimes out to 2 or 3 decimal points) of the dollar to gold, which demonstrates the machine trading algos at work. To Jordan’s point there are other times where that correlation isn’t as strong, but it isn’t necessarily about tops or bottoms with one matching the inverse of the other, and more about the direction of the dollar generally acting as a headwind or tailwind and contributing factor to PMs. There are times where they travel together getting the safe haven bid, but to your point Larry, there may be a day where gold gets the only safe haven bid.
Those who didn’t buy anything on Friday should consider buying today.
KTN, becoming my largest holding…
It will fly when silver finally moves (which is likely very soon)…
Ira Epstein in his market wrap yesterday………stated that the USD lost it’s embedded Slow Stochastics reading on the overbought side…closed below 79…….right when the USD hit the 18 day MA on comex in it’s bounce…….and conversely the EUR lost it’s embedded oversold reading and closed above 21………..may mean a short term reversal which would be bullish for comex algo’s in the gold pit near term……….
Seems like solid support at 18 month MA at 1808 did a good job at month end…………let’s see if bulls have what it takes to hold that line going forward !
When fear enters equities the dollar still gets the bid…It will eventually flip and gold gets that bid…That is the real run in gold…lose of faith in fiat…imho…currently dollar and gold are totally correlated and shows the gold as not yet the sanctuary trade…..there is a correlation study in most platforms…glta