In this weeks news, precious metals are getting ready for take off. Here’s why….
Gold price set to surge 10%
Dan Tapiero says gold is about to blast off. Referring to the below chart, he says that the short term target is 10% and to expect even higher in Quarter 4. He also says to expect a 50 day moving average (see pink line) to support as it has since April.
Gold and silver unstoppable
Alasdair Macleod warned as policies around the world fail, gold and silver will be unstoppable. This article explains the fallacies behind inflation, deflation, economic performance and interest rates.
READ MOREThis is why China is stockpiling commodities
This image could be the most important chart of the year. It puts the relationships between gold and commodities into context.
First you can see the Fed’s rate cut to zero on 16 March and secondly, the inflationary period that follows. It was at that point that the S&P500 reversed its fall of 33% and started its dramatic move into new high ground, and the dollar’s trade weighted index peaked, losing about 10% since.
Gold then took the hint and rose 40%, while commodities turned higher as well, gaining a more moderate 20%.
Both gold and commodities are clearly adjusting to a world of accelerating monetary inflation, where bad news on the economic front will accelerate it even more.
Gold and silver price targets
“The patterns on Gold and Silver are increasingly looking like bullish triangles with double bottoms suggesting that the next impulsive rally is likely to be higher” says Top Citi analyst Tom Fitzpatrick.
Gold price target: Now at $1,902 and testing the triangle top around $1,962. Silver price target: Much the same here, top of the triangle around $28.52 and a double bottom neckline at $28.90.
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