19 August 2015

Gold Daily and Silver Weekly Charts - Golden Slumbers

Gold and silver popped higher today from early on, and then continued their rally as the Fed minutes were leaked ahead of schedule, maybe to provide some relief to the stock market.  They revealed confusion and gloom about the real economy, and cast some doubt on their move to raise rates in September.

So yields on Treasuries slumped, as did oil, while gold and silver continued on their move up to overhead resistance.

This is a particularly important resistance level for gold which is in an active month, although you would not know it by look at the action, or lack thereof, at The Bucket Shop®.

You will not see any breakout coming at the retail level, or in the paper trade in New York and London where leverage of paper to bullion is already at historically high levels.  It will be too easily hidden and explained away.

But there will be a reckoning between willfulness, the will to power, and reality.

And if and when it does become obvious, it will almost certainly be too late to act.  

This is likely still to be a long and rough ride.  We are in a period of historic change, which some have called a 'currency war.'  A lot of people don't get it, or do not want to admit it.

Get right, and sit tight in a durable portfolio, and let's see what happens.

Have a pleasant evening.