While the long-term outlook for gold could hardly be better. However, the short to medium-term outlook deteriorated substantially last week…with an important chart reversal on Thursday that was not negated by Friday’s bounce back. Moreover, the latest COTs coming in...
Gold Editorials & Commentary
June 19, 2016
The British referendum should have a significant influence on the markets this coming week. It is best to keep from making specific predictions, especially about the intermediate trend, until after the results have been announced.
In the fall of 2015, I said the Federal Reserve would raise interest rates once in December and then would not be able to fly any higher after that. The stock market would crash shortly after the Fed’s pulled up on the interest stick (which it did in what became the...
Another very choppy week for stocks, which are quite oversold. Nonetheless, stocks began to show the needed bounce Thursday, which motivated me to get long a few stocks. However, Friday’s action forced me to sustain a few small losses.
Gold speculator and large futures traders sharply raised their gold bullish positions higher last week for a second consecutive week and pushed gold bets to a new highest level of the year, according to the latest Commitment of Traders (COT) data released by the...
According to Larry Summers 1985 paper on Gibson's Paradox, rising gold and silver prices have historically driven interest rates higher. Since January, there has been a 25% increase in the price of silver and and prices of silver producers and silver juniors are 300...
Something interesting happened on Friday; trading volume exploded on a decline in the Dow Jones. In the BEV chart below I inserted the daily trading volume (mils) for the Dow Jones instead of the usual BEV values to highlight what happened. It wasn’t just the...
Last week provided confirmation that the tide of battle in the 2011 war on gold and silver has turned, as anticipated last week. However, winning a major battle is not the end of the war. When the Allies stopped Rommel’s advance eastward along the North African...
Gold settled out the week on Friday at 1302. The last time gold closed above 1300 to finish a week was for that ending 15 August 2014: 1300 then felt terrible, today it feels terrific, even if but half what it "ought be" by the above scoreboard level of 2587. Still...
June 18, 2016
Gold is soaring. It should—and a lot—but in my view not for the reason it is. Indeed gold is insurance for uncertain times, a time that Brexit seems to represent. But insurance is an administrative cost—one must minimize its use. Moreover, insuring against Brexit...
Gold sector is on a new major buy signal. However, the sector is vulnerable to a multi-week correction which is long overdue. Silver is on a long-term buy signal. Short-term is on buy signal. However, silver is vulnerable to a multi-week correction which is long...
Like an oak slowly growing in a stand of pines, the outgrowth of sentiment extremes become visible through major market inflection points. The irony, however, is seeing them. This is because on both sides of a market cycle there is a natural tendency for conditions...
We know of no discernible line where stupid begins; for sure, it does not end. There are two primary reasons for the never-ending goal of buying and holding physical gold and silver:
This is a special preview of the KE Report Weekend Show. In this week's show, we feature Adrian Day, founder of Adrian Day Asset Management.
The gold mining stocks continue to defy any bearish price action or perceived bearish development. Pundits first warned because of the “bearish” CoT data. The commercials are always right and a big decline is coming!
June 17, 2016
Thomas Hoenig, the Vice President of the FDIC, announced at the Global Economic Meeting in France that, “The market no longer determines what is adequate capital for the banking industry. Following generations of taxpayer support and ever-expanding government...
Technical Analysis of The Markets Via Videos.
The red-hot gold stocks surged again this week in an apparent early-summer breakout. This strong buying is defying their seasonally-weak odds this time of year. Investors are flocking back to the miners as gold powers higher on also-counter-seasonal strong...
Gold prices soared to their highest level in nearly two years yesterday on BREXIT concerns and deepening concerns that central banks are slowly losing control of the financial and monetary system. Gold subsequently fell quite sharply below the key $1,300 level but...
We all know the debt load in the US economy is horrendous and unsustainable. The US government runs deficits of approximately $1 Trillion per year, even with interest rates at historical lows. Current official national debt exceeds $19 trillion, of which $13.9...
I’ve questioned the moves higher in gold, silver and miners these last few weeks. Consequently, we will soon find out if my skepticism was warranted. The 6-month cycle lows didn’t seem sincere enough, especially in miners, as something seemed awry. Well, it's make...
June 16, 2016
A month and a half after they began, the Fort McMurray wildfires in Alberta, Canada still blaze on in contained patches. Already estimated to be the most expensive disaster in Canadian history, costing the Albertan economy $70 million per day, the fires are now...
Yesterday the Fed failed to raise rates…again. It’s pretty incredible if you step back and think about it. Here were are, seven years into a supposed recovery, and the Fed’s actions tell us the economy cannot handle rates higher than 0.5% (the overnight benchmark...
It’s happening—the price of gold is starting to finally make big gains -- and recently broke the US$1300/ounce threshold. Optimism is growing that we have done away with the bear market—we probably are. But there are cautions, as I indicated in my previous articles...
Brexit is not the most important problem facing markets, it is mounting problems in the European banks. But before looking at that systemic issue, I will summarise the Brexit position in the last few days before the referendum.
Gold hits near six-week highs ahead of Fed, Brexit vote (GoldCore via Reuters). Gold gains ground for 5th straight session (GoldCore via Marketwatch)
June 15, 2016
You didn't come here today for bad news. There's plenty of that everywhere you look…and even where you don't look. So here's the good news. A new rush to gold has begun. To see where we're headed, let's first see where we've been.
It’s Wednesday morning – and let’s start with a little background, as we head into yet another episode of the Fed’s LOL “most important meeting ever.” To that end, recall that it was just seven weeks ago, on April 27th, when Yellen & Co published one of their...
The gold-to-silver-ratio is an indicator that shows how many silver ounces are required to purchase an ounce of gold. The gold-to-silver ratio is one of the most important parameters in the precious metals market, as it measures the relative value of gold and silver...
After we caught the lows in late 2015 and early 2016 in the metals complex, the market has been acting quite bullish. But, “acting” bullish is not the same as resuming a bull market. The latter is that for which we seek confirmation in the current set up.
