Stocks and Precious Metals Charts - Setting the Stage - NEM Buying GG

Stocks opened lower today, amid risk concerns about the global economy.

Gold and silver moved slightly higher as the Dollar index was off a bit.

Stocks managed to come off the lows, and finished the afternoon trade just slightly lower.

Let's see if the equity markets are going to try and roll over here, or not.

As we enter earnings season the focus will start moving a bit more towards individual stocks.

Newmont Mining announced their intent to acquire Goldcorp to form one of the world's largest mining companies.

As the metals move higher expect more volatility and consolidation in the mining complex.

There will be a stock market option expiration on Friday.

Have a pleasant evening.

Annual Physical Gold and Silver Holdings In Trusts and Funds

"Gold has worked down from Alexander's time... When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory."

Bernard M. Baruch

Stocks and Precious Metals of Charts - Calm Before the Storms - Gold May Shine In 2019

"The corporate bond market has all kinds of problems. I think investors should use the strength of junk bonds that's happened as a gift and get out of them.  Corporate credit, as a percentage of GDP, has never been higher.

The leverage in the corporate economy is very bad, There's been a lot of buybacks — borrow money at low rates, buy back stocks — which of course, it's just turning the equity market into a CDO residual, an equity piece, that's getting thinner and thinner, riskier and riskier.

I think investors need to go to strong balance sheets.   Strong balance sheets are going to be the way to survive during the zigzag of 2019."

Jeffrey Gundlach


"Goldman Sachs Group Inc. is leading a pack of bullish voices cheering for gold.  The bank’s analysts led by Jeffrey Currie raised their price forecast for gold, predicting that over 12 months the metal will climb to $1,425 an ounce -- a level not seen in more than five years.  Bullion has benefited as rising geopolitical tensions fuel central bank purchases, while fears of a recession helped boost demand from investors seeking 'defensive assets,' they said."

Bloomberg, Goldman Predicts Gold Prices to Climb to Highest Since 2013

The beginning of January has gone a little better for the bulls than they might have imagined in the throes of the December declines.

Earnings results should start trickling in and this may help to provide some more rigor to stocks than the steady propping up of equities by the PPT.

Gold looks poised for a breakout, but it needs to break through that stubborn overhead resistance first. Until then its all just speculation.

It seems that Goldman just put out a bullish forecast for gold this year. No wonder they were taking all those Comex delieveries for their house account last year.

Need little, want less, love more. for those who abide in love abide in God, and God in them.

Have a pleasant weekend

The Price of Gold Compared to the US 'King Dollar' Index

Here is a comparison of the US Dollar DX Index and the price of Gold in US Dollars.

There is a fairly reliable inverse correlation. That means when the dollar moves higher, gold tends to move lower. And vice versa.

This does not have to be the case. It just sometimes works out that way.

The true corrleation may very well be considered a positive one to some currency component of the DX index, such as the Euro.

Sometimes both values, gold and the Dollar, move together, especially during periods of risk stress when both gold and cash dollars may act as safe havens.