Gold Editorials & Commentary

GLD - on sell signal.

We exited our short positions in gold for a modest but useful profit when it broke out of its downtrend towards the end of October.

Well, Americans voted and the winner is inflation. Half our voting populace inexplicably decided to award a second term to Obama. Four more years of mind-boggling record deficits and record national debt growth!

Six Reasons Bulls Should Be Very Concerned:

Long-Term

A question that many are asking right now is what impact the Fed's latest monetary policy action will have on the projected deflationary scenario for 2013-14.

One reference book most large libraries carry is "The Dow Jones Averages; 1885 to 2010", which contains Dow Jones' authorized history of the Dow Jones Averages. We all owe Dow Jones Inc. a debt of gratitude.

It is that time in the presidential cycle that gets everyone emotional and concerned with the future outlook of the United States.

Poor New York and New Jersey, there are people who had everything they owned taken away from them by Hurricane Sandy. I'm not happy with Wall Street, but to most people, there is something wonderful and unique about New York City, and yes New Jersey too.

GLD - on sell signal.

US Dollar Monthly Bar Failure Chart

Within the context of a Primary Bull Market, the price destination target of US$1,109 an ounce for gold remains prevalent; as can be seen from the 3% X 3 box reversal Point & Figure chart below (courtesy stockcharts.com)

One of the most common questions that I'm asked goes something like this: "If the deflationary long-term cycle is in its 'hard down' phase until 2014, why should we expect gold' value to rise?

I don't know whether to start with the gold market comments on this transition or the upcoming Mayan calendar Dec 21, 2012 predictions.

A nasty Golden Harp could soon have its cords plucked, with the resonance working to shake loose the bankster cover of improper illicit duplicitous and probably highly illegal usage of Allocated Gold Accounts.

In the 1st October Weekly Update we described three signs that will likely be seen at around the time of, or just prior to, gold's ultimate price top.

If you own physical gold, gold mining stocks or plan on buying anything related to precious metals before year end, you are likely going to get excited because of what my analysis and outlook shows.

Life is busy these days. I'll be relatively brief today and there won't be a weekend letter next weekend.

This week I want to talk about fear before we get into the charts.

GLD - on sell signal.

After a long contentious slog, the hyper-critical 2012 elections are almost here. Americans will finally have the opportunity to choose our great nation's future course. Will we collectively vote for free-market prosperity or big-government dependency?

Exports Fall

The Dow Jones saw some excitement this week, or did it? Can you see this week's movement in the BEV chart below? I can't. During 2011 & 12, I waited for the Dow Jones to get above its BEV-10 line; and stay there. It was like watching paint dry.

With earnings coming out from some heavy hitters this past week and revenues coming in less than stellar we saw some major weakness late in the week.

GLD - on sell signal.

Since being shunned by traders last year after a series of margin increases, gold has enjoyed a worthy comeback since turning around this summer. The yellow metal rallied from a yearly low of $1,540 to a recent high of nearly $1,800.

With the US stock markets near major multi-year highs, traders are naturally very optimistic. Predictions abound for a continuing advance to new all-time highs. But behind this happy facade, the secular picture is actually quite bearish.

The US Presidential Election will be held on Tuesday 6th November and the election results should be known by the time the US financial markets open for trading on Wednesday 7th November.

No matter who wins next month's presidential election, the next few years should prove to be exciting for market watchers, and miserable for most everyone else. We've had the financial markets dominated by politicians and special-interest groups for decades.