The past two weeks gold has been on a tear that can not be denied even though the bullion banking cabal has tried and tried to slow-the-roll, they have failed. The bulls have proven to be winning the last few rounds. We have been calling for much higher gold for almost two years and we identified this time as the launch pad.
From here we identified a target north of $1,669 and once this target is convincingly breached the charts would never move below this mark – $1,670 would, in fact, be the new low, just as $1,050 has been the low we have been watching since December 2015.
As of 10:22pm EST on Thursday June 20, 2019 we are seeing gold and silver both moving to higher ground fueled by two major pieces of info – the first was the Fed changing directions on the “forward guidance” and the fact the Middle East is on the verge of erupting involving the U.S., Iran and host of other nations in some type of conflict.
Related: Gold Will Move Much Higher in 2018
The Eastern, Hong Kong market, has been driving the metals higher over night and the day traders (London and New York) have simply supported their efforts. This has been the pattern the past few days. We are seeing some incredible action in the Hong Kong market followed by muted, almost nonexistent action in the London and New York markets.
As can be seen both metals are fighting for higher ground and gold has breached $1,400 but it’s a weak breakthrough – it needs to shot up past $1,410 and hold on for the “pit” to open in the morning or ideally it would be great for gold to close above the $1,410 mark on Friday. I think that’s just dreaming at this point, but, anything’s possible.
Silver’s move above the $15.50 mark was a seriously weak effort. It would be awesome to see silver climb to $15.60 and hold tight for the pit to open and then move north of $15.75+ to close the week. This would make for a positive, exciting open on Sunday or set the stage for a “drive-by shooting” as we have seen on a number of occasions, especially after strong moves the previous week.
We hope to see the metals move higher and higher. If our targets are to be achieved by the end of 2020 gold needs to begin making serious, sustained, moves like we have seen the past couple of days. We need more of that type of action. I believe we are going to get it. I also believe we are going to see silver make some very strong moves as well. Both metals have been exhausted over the past 6-7 years as we have witnessed massive changes that should have pushed these metals to much higher ground. It appears the foundation of sand is giving way and the metals will no choice but to move to higher ground simply to find solid ground to stand upon.
The mining sector for both metals is a disaster, the uses for silver has exploded over the past 6-7, China, India and Morocco are wrapping up 5 year programs to install solar panels atop 600+ million homes (silver), the demand for physical gold has exploded over the past two years, the global economy is in a shambles, Venezuela has a gold backed cryptocurrency in use, Russia is on the verge of deploying a gold backed cryptocurrency, Malaysia is calling for a gold backed international trade note, China is moving across the globe internationalizing the yuan and works hand-in-glove with Russia. These are just the items off the top of my head that are all 100% gold and silver positive. The list demanding attention to the performance of both metals grows by the day. Got physical close at hand?
