Gold Rally rolls on
(Kitco, Friday Aug.16th, 2019) – Another day another rally in gold, the redundancy of it all. gold and silver continue push higher maker new highs and a regular basis and look prepped to make another run higher. The pattern remains extremely bullish and shows no sign of changing
All signs point to the rally to continue; however, at some point there will be a pullback, which is where we will be looking to add on. Since the rally began in May there has been a unique pattern that shows that the rally should continue. This week we are seeing the same pattern this week indicating there is more room to the upside
Our targets remain $1,600 gold and $18.00 in silver. Remember in the pattern we are seeing now we are looking to buy pullbacks. There is a lot of news flow that will create opportunities to buy the dips, the key here is patience and discipline waiting for the right levels to enter.
Summertime Rally, What Does It Mean?
As far as financial markets go, yearly historical patterns emerge over time and the summertime pattern is particularly slow, always has been.
Except this year, this year we have a perfect storm of activity that is heating up gold and the metals. History be damned, this huge 2019 summer gold price rally is for real and has put gold up 20% this YEAR.
Without getting too technical, the U.S. under President Trump has opened up their first term with big tax cuts and the elimination of regulations that were killing U.S. employment, work hours and finally …opportunity. These moves have cut thru a vast swath of political swamp mud that is so thick and old that it upset a lot of people heretofore unreachable in the Washington political elite, both Democrat AND Republican.
The first green shoots of a better economy were a few years off we thought, until it took off immediately after these taxes and regulations were cut. It showed us something powerful and missing in America lately…it showed us we weren’t that far back, we were still Americans who could change the world again.
We have huge resources we didn’t have (10) years ago with the fracking of natural gas and the shale oil production that has put us first AGAIN in oil and gas reserves and exports. All akin to American ingenuity, AGAIN. After all, it was the USA that figured out oil first, and refined it better too, and that’s just ONE improvement we’ve made since Trump. The wall, the Mexico/ Canada trade agreement , the China fight that no one had the guts to start, all of it is uniquely AMERICAN in its scope and form. President Trump has brought this stock market back with a bang while we all were waiting for the crash, it may still happen and probably will, but the feeling is…we got this, we will overcome it.
Now, Gold and the Metals have legs, they will be the counter – balance to this low interest rate and future inflationary market. By holding a hedge to paper money printing, gold’s price will rise back to above $2,000/oz. quickly and then some as we start paying back all the damage done by zero interest rates and the U.S. Federal Reserve’s Quantitative Easing , or QE, program under Obama that printed over ($8 trillion) DOLLARS. The U.S. also has (8) thousand tons of gold, the most in the world by twice and getting gained on by China incidentally, having the price rise on that would help out our country too now wouldn’t it?
The best workers and the best production is still American and our country has a gold standard of work ethic here too. However, now, right now, we are getting ready for the fight of our lives as we attempt change China into an honest, law abiding trading partner before their military says they don’t have to be. We need Europe to join us on China and that’s Trump’s big task…let’s try to help by working together for a truly better future , not apart and divided as we are currently. Gold will play the most intimate of parts in this global recovery, it along with the other metals ultimately hold the cards as you can’t print MORE OF THEM!
Posted by :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com