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Gold $1788: a price of importance

Commentaries & Views

  1. The US election is still being disputed by republican fiat bugs, but it looks more and more likely that democrat fiat bugs have won.

  2. In the world of private money (gold and crypto), elections also take place… at major support and resistance.

  3. These are the most important action zones for gold and crypto enthusiasts. 

  4. If investors act professionally at these zones, substantial wealth can be created and retained.

  5. Double-click to enlarge this important weekly gold chart.

  6. The price of gold has arrived at the major support zone of $1788, an event that I suggested investors prepare for when the price was near $2000.

  7. Investors must now “elect” to buy, sell, or do nothing.  I’m buying modestly, and that’s my recommendation for all gold bugs of the world.

  8. It’s unknown whether gold now rises to significant resistance at $2000-$2089, or it eases down to significant support at $1666.

  9. Higher price enthusiasts do have the appearance of some green shoots on their side:

  10. Technically, my important 15,5,5 Stochastics lead line is oversold and beginning to turn higher.  The $1788 price zone may not be the exact low of this reaction, but it’s highly likely to go down in history as a spectacular buy zone for serious gold bugs!

  11. Seasonally, the December time frame is often a launch pad for significant rallies.  Chinese citizens buy to celebrate the New Year and Western hedge funds often get caught in a short covering rally. 

  12. They then rush to buy, and that can create some very intense upside price action.

  13. Fundamentally, the vaccine news is probably fully priced into the gold price.  Money printing, debt, and the slowing U.S. economy are coming back into focus as key gold market themes.

  14. “Storm clouds are gathering.  This winter could pose an unusual challenge for many people across the country, unless Congress takes significant actions.” - George Ratiu, senior economist at realtor.com, Nov 30, 2020.

  15. Unfortunately, the actions being recommended by economists like Ratiu are mostly debt oriented.

  16. Double-click to enlarge.  GOAU is one of my preferred mining and stock ETFs that I’m using for accumulation in the gold $1788 buy zone.

  17. Note the bullish action of the RSI oscillator versus price, and the oversold position for Stochastics.

  18. In addition to being oversold, there’s now a crossover buy signal in play for the Stochastics oscillator, and this morning’s rally in gold adds weight to that signal.

  19. Double-click to enlarge this monthly Bitcoin chart.

  20. Will the $20,000 resistance zone “election” be won by crypto bulls… or by the bears?  That’s unknown, but the good news is that a bull flag may be in play.

  21. Private money (both crypto and gold) has outperformed most public assets (stocks and bonds) in 2020, despite receiving no help from governments or central banks.  That’s a fact that deserves significant investor attention!

  22. Double-click to enlarge. The CRB general commodities index looks to have made a multi-decade low, and a major bull run is getting underway.

  23. Double-click to enlarge this important SIL silver stocks chart.

  24. Eager accumulators can buy now.  Stoploss enthusiasts can put a stop just under the recent lows at about $38.80.  A surge to the highs at about $46-$48 is likely.  With the CRB index already moving steadily higher, silver is likely to be holding the “lead baton” when the inflation alarm rings!  
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.