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1.The 2017 gold market rally continues nicely, with a
current pause at light overhead resistance in the $1215 - $1220 area.
2.Please click here now: http://www.graceland-updates.com/images/stories/17jan/2017jan24gold1.png Double-click to enlarge this daily bars gold chart.
3.Note the flat lining action of the 14,7,7 Stochastics
oscillator at the bottom of the chart.That�s quite positive, and opens the
door to a further move towards my $1245 target price area.
4.Please click here now: http://www.graceland-updates.com/images/stories/17jan/2017jan24trump1.pngDonald Trump is likely to be a positive catalyst for higher gold
prices, for many reasons.
5.On the geopolitical front, the South Sea island
building by China looks like it could quickly become a major gold price
driver.
6.Trump has also been very clear about his goal of
slowing US corporate outsourcing of labour to foreign countries.
7.This is quite inflationary and could end up creating
a bit of an earnings quagmire.
8.Please click here now: http://www.graceland-updates.com/images/stories/17jan/2017jan24usd1.pngDouble-click to enlarge this daily bars US dollar versus Japanese
yen chart.
9.It�s true that US bond market yields have risen a bit,
but Trump�s dollar-negative statements are overwhelming the rise and putting
downwards pressure on the dollar against both the yen and gold.
10.Gold has stopped rising at $1215 - $1220 at the
same time as the dollar has stopped falling at 112.50 against the yen.
11.All Western gold community eyes should be focused on
that 112.50 dollar versus yen price.If the dollar falls below that support,
it should send gold through $1220, and on towards $1245.
12.Many gold analysts have been trying to call an end to
the current rally, and have been negative since the December lows.In
contrast, I would argue that the rally is poised to accelerate.
13.I don�t think these analysts really grasp the
tremendous influence that Trump and his team can have on the value of the
dollar against key currencies like the yuan and the yen.
14.Please click here now: http://www.graceland-updates.com/images/stories/17jan/2017jan24usd2.png Double-click to enlarge this daily bars chart of the dollar
versus the Swiss franc.
15.The dollar is beginning to look like a train wreck on
this chart.It�s broken down from a head and shoulder top pattern just as
Trump has been inaugurated!
16.When push comes to shove, the US Treasury has vastly
more power than the central bank wields, and the Treasury has legal authority
to devalue the dollar.The Fed has no such authority.
17.Janet Yellen�s recent negative statements about
Trump�s stimulus policies will fall on deaf ears, and may create a
backlash.
18.Janet would not fare very well in a confrontation with
Trump.I expect future statements from her about US government policy to
become quite timid as she begins to realize how determined Mr. Trump is to
lower the value of the dollar.
19.Please click here now: http://www.graceland-updates.com/images/stories/17jan/2017jan24gdx1.pngGDX is breaking out of a small ascending triangle, and making a
beeline towards my $25 target zone.
20.Technically, GDX looks superb now. The green downtrend
line is now support, as is the horizontal resistance at $22.50!
21.The bottom line is that the traffic light is turning
green for most gold stocks, while President Trump turns it red for the
dollar.
22.Please click here now: http://www.graceland-updates.com/images/stories/17jan/2017jan24kgc1.png Double-click to enlarge this Kinross daily bars chart.
23.It�s blasting upwards from an inverse head and
shoulders pattern at a key support zone.Investors can book some light profits
near the $4.22 price zone, and use my unique pyramid generator to do so
systematically.
24.Donald �The Golden Trumpster� Trump may or may
not make debt-soaked America great (he likely won�t), but he�s almost
certainly going to make gold ownership a great investment during his
presidency.I will dare to suggest it�s time for the Western gold community to
throw a bit of caution to the wind, and sit back and enjoy this gold price
rally.This is a rally that seems poised to accelerate in quite a shocking
way, as the Golden Trumpster makes one dollar-negative move after another!
Thanks!
Cheers
St
Stewart Thomson
Graceland Updates
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Stewart Thomson is a retired Merrill Lynch broker. Stewart
writes the Graceland Updates daily between 4am-7am. They are sent out around
8am-9am. The newsletter is attractively priced and the format is a unique
numbered point form.Giving clarity of each point and saving valuable reading
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Risks, Disclaimers, Legal
Stewart Thomson is no longer an investment advisor. The
information provided by Stewart and Graceland Updates is for general
information purposes only. Before taking any action on any investment, it is
imperative that you consult with multiple properly licensed, experienced and
qualified investment advisors and get numerous opinions before taking any
action. Your minimum risk on any investment in the world is: 100% loss of all
your money. You may be taking or preparing to take leveraged positions in
investments and not know it, exposing yourself to unlimited risks. This is
highly concerning if you are an investor in any derivatives products. There
is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion
written off officially. The bottom line:
Are You Prepared?
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