Tactics For The Gold Bull Era

news.goldseek.com / By Stewart Thomson / Tuesday, 21 November 2017

1. Gold surged higher on Friday.  Then it gave all the gains back yesterday.  Looking beyond this short term noise, gold is not an exciting market right now.  What could make that change?
2. Please click here now.  Double-click to enlarge. Gold is trading in a rough sideways trend with an upside bias.  This bias continues to strengthen, albeit very slowly.  The technical action reflects the fundamentals and liquidity flows and clearly, patience.
3. On that note, please click here now. I jokingly refer to the SPDR fund as “Spider Man”.  Chindian demand is decent, but Spider Man looks like he’s caught in his own web; while there’s no significant selling, buying has come to a standstill.
4. If Chindian demand is solid, gold doesn’t really need a lot of Western fear trade buying to move higher, but it must have some.  That’s just not happening right now.
5. The winds of change may be in the air, with US wage inflation pressures intensifying, an approaching debt ceiling debate, and a new Fed chair who stands ready to significantly reduce bank regulation.
6. Without a bull cycle in money velocity, gold stocks and silver stocks will have a very hard time outperforming bullion on a consistent basis.
7. The good news: these winds of change (especially the small bank deregulation favoured by Fed chair Powell) mean there is a very high probability that US money velocity ends its two decade bear market in 2018.

READ MORE

The post Tactics For The Gold Bull Era appeared first on Silver For The People.