After the spike high in gold on the weekly charts three weeks ago, gold has fallen from $2789.00 to its trading range today of $2550.00. A 8.5% decrease in price. In this same period the dollar has improved from 104.27 up to 106.80 a 2.42% increase in the valuation of the dollar. A huge move in currency terms. This certainly does not account for the large depreciation of gold.
So that was the easy analysis which we can see on CNN. What accounts for the remaining 6.08% difference? Here I resort to pure guesswork. I think the Trump factor plays a major role.
- Perception of a more stable future.
- More rational, non woke, policies.
- An end or tailing off of war. (I am sure he faces huge opposition from the political, banking, industrial, military complex).
- The possibility of reducing the unrepayable debt situation, US Debt:GDP ratio of 129% (Elon Musk).
- Both houses and the presidency are in Republican hands. Making passage of reforms easier, notwithstanding the current shenanigans being played out.
- Trump having had one hectic term in office has a much better idea of what he faces as well as being able to pick people better suited to execute the tasks at hand.
Do I believe that he will have an unfettered license to make policy as he sees fit? No, I think he will have policy push back from the uniparty. I believe that he will resort to the use of presidential orders to get the job done. God help those who disobey.
Will this come to fruition? Who knows? I just hope the world goes on a path of more freedom, removal or dissolution of the three letter agencies worldwide and in the USA.
We wait in anticipation.
BITCOIN AND GOLD
BTC:GLD: Bitcoin outperforms gold. Trump spike evident. Looking overbought. GAPS GET FILLED.
ETHUSD: Hold. Now overbought. Not a sell yet. Let us watch today’s activity.
BTCUSD: Hold. No sell yet, but the time is nigh. Looking very overbought.
GOLD AND SILVER STOCKS
Gold outperforming gold stocks. Watch the gap up. Fractionally overbought. Still has legs to go higher.
Silver outperforms silver stocks.
GOLD AND SILVER
Both gold and silver have taken a beating during the past three weeks. Mainly due to a relaxation effect of the markets bearing Trump’s policies in mind. Discussed above.
Silver to Gold Ratio
Gold is outperforming silver. Notice the Trump spike and reversal in progress.
GOLD TO USD
USD is outperforming gold. Need I say why? I expect this to go on for a while. Gold is looking oversold but has no upward pointing indicators.
A LOOK AT THE GOLD AND SILVER CHARTS
| Today | Last Week | |
|---|---|---|
| Gold Price | $2,554.00 | $2,683.00 |
| Silver Price | $29.99 | $31.59 |
| Gold:Silver ratio | 84.34:1 | 84.88:1 |
| Gold Miners bullish percent index | 64.29 | 82.14 |
| Dollar Index | 106.75 | 104.57 |
| Dow:Gold Ratio (BahaUS 44079.00 Gold price, $2,554.00) | 17.25 | 16.30 |
| Current USA inflation rate (Dept. of Statistics) | 2.6% | 2.4% |
Gold’s low of the week was $2,536.00 and the high was $2,686.00, now trading at around $2,555.00.
- Gold Monthly: is a hold. We bought in at $1,800.00 in October ‘23. The indicators are turning down but not giving a sell signal yet.
- Gold Weekly: is a sell. Funds are still flowing into the metal. (Chart below).
- Gold Daily: Out since 31 October
The low for Silver this week was $29.67 and the high $31.56, trading around $30.09 at present.
- Silver Monthly: Hold. Buy signal taken at $24.00 in March. Weakening. Out of overbought territory. Good funds flow into the metal.
- Silver Weekly: Sell (7 November 2024). (Chart below).
- Silver Daily: Sell. (Sold 28 October 2024) There is good support around $30.00. I think a worst case scenario would be $28.00.
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A video by Mike Adams on the Goldbacks.
Well worth a look!
On the Stockcharts.com charts, the blue vertical lines are our proprietary system buy signals and the red vertical lines are system sell signals – for information purposes only
Please contact us to arrange the purchase and storage of your gold and silver requirements in a safe, insured location outside of your jurisdiction.
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This is my interpretation of the market and is not to be taken as financial advice. Before making any buy or sell decisions I recommend that you consult with your professional financial advisor.
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