16 June 2016

Gold Daily and Silver Weekly Charts - The New Normal

"Maybe more of what is causing this rate to be low are factors that won't be rapidly disappearing but are part of the 'new normal.'"

Janet Yellen, 15 June 2016

Probably the smartest thing that the public can do, in the US and the UK at the least, is something that changes the basis of this 'new normal' that the professional plutocrats find to be so comfortable for themselves, if not for their broad constituencies.

Gold took off higher today and cracked up above the 1300 level.

And it had run quite far in a short period of time, and those who trade the precious metals like paper currencies were seeing some nice opportunities for a quick whipsaw, and they took it.

So in a fairly short period of time gold was smacked back down about $30 intraday as the algos did their thing, and the thin specs started taking profits and then dumping positions.

And unless you are a daytrader this does not matter much at all. It was not unusual for gold to get rejected at the 1300 level This has been the story for quite some time, as well as the old support and resistance at 1280.

Brexit is next week, and the Fed is chomping at the bit to give their masters at least 25 bp this year before the elections draw too close.

Let's see how gold digests this pullback against its recent gains, which have been quite impressive.

Have a pleasant evening.