Gold & The PCE: Prepare For Blastoff Stewart Thomson
email: stewart@galacticupdates.com
email: admin@galacticjuniors.com
email: admin@galacticswinger.com
Aug 27, 2024
- As the tricky stock market crash season months of September and October approach, I’ve urged heavily invested gold stock enthusiasts to consider buying put option insurance, allocating 2%-5% of the portfolio’s value for the purchase.
- It’s not a top call for the miners, gold, or silver. It’s simple fire insurance for the gold stocks “house”.
- The good news is that while the short-term picture for gold may be tricky, the medium-term and long-term outlooks are both fantastic!
- On that note, please click here now. Silly Western politicians use tariff taxes like baby bottles for inefficient corporations who are making overpriced products for inflation-waylaid consumers.
- The politicians created the inflation with their failed wars against both the Corona virus and Russia, and now they are throwing tariff tax gas on the fire.
- For some potential good news, please click here now. Savvy Chinese car makers setting up in Mexico may be able to meet free trade treaty requirements and get US consumers the cars they need… at half the outrageous price they are paying now.
- Even if that doesn’t happen, China will become an even more dominant car maker than it already is, and the citizens will celebrate… by buying lots of gold.
- Please click here now. Double-click to enlarge. Given the rising tensions (and outright war) in the mid-East, it’s likely that the bullish double bottom overwhelms the H&S bear continuation pattern, and the oil price moves up towards $90 again.
- This is occurring as the Fed prepares to launch its next attack on the nation’s elderly savers… with cuts that take already-low rates down to the 2%-3% range.
- For out-of-control debtors (led by the US government), any rate above zero is a concern, and on that note, please click here now. Double-click to enlarge this key long term rates chart. I urged investors to prepare for a lengthy (about 2 years) pause once rates rallied to the important 5% zone, and to focus on gold from there. Gold is now 30% higher from the point of that call.
- Once the pause in rates is over (expected around year 2026), gold is likely to dip, and rates should begin a disturbing rise towards the key 8% zone. From there, US consumers may start to look like inflated shrimps cooking on rising rate barbeques…
- And frenzied buying of precious metals will begin!
- Please click here now. I’m predicting that a big downwards “revision of the revision” lies ahead, and it could ultimately mean 50% less jobs have been created than the government has claimed.
- It’s clear that the risk of a stagflation-oriented recession is immense, and it’s even more clear that all investors need to own more gold.
- Please click here now: Double-click to enlarge this important weekly gold chart. Note the Oct-Nov 2023 “chart-perfect” arrival of rates at 5% as gold arrived at my big buy zone of $1810. Now rates have a H&S top pattern, and gold is bursting up from a flag-like rectangular drift. That breakout opens the door for a rally to $2800-$3000.
- A daily focus on the big picture (fundamental, cyclical, and technical) is critical for investors as inflation, recession, the 2021-2025 war cycle, a wildly overvalued stock market, debt ceiling horror, and empire transition dominate the investing landscape. I cover this big picture 5-6 times a week in my flagship Galactic Updates newsletter. At $199/year, investors feel the price is too low, but I’m offering a $179/15mths “special offer” that investors can use to get in on the winning action and meticulous analysis. Click this link to get the offer or send me an email and I’ll get you a payment link. Thanks!
- The PCE inflation report is Jay Powell’s favourite inflation indicator, and the next one comes out on Friday. Significant volatility should be expected as the report could be dovish enough for Jay to announce a 50basis point cut after the September 18 FOMC meet.
- Silver? Please click here now. Double-click to enlarge. As price broke out over $32, I urged silver bugs to prepare for a pullback to $26, and possibly to $22. The pullback is likely almost over now, and the PCE will probably be the catalyst for the next upside blast. That should see silver reach $35 and pause one last time before charging to a new all-time high.
- It’s possible that silver could be trading in early 2025 at $50 with gold at $3000.
- What about the miners? Well, please click here now. Double-click to enlarge. Basis the XAU versus gold, gold stocks are ending an almost 40year bear market, and starting what should be an equally long bull market run!
- It’s likely that gold stocks are ready to play “leap frog” against gold, and gold $3000 could coincide with 232 for the XAU. The 157 zone is significant resistance, and a pre-PCE pause is expected.
- For a look at the short term gold stocks action, please click here now. Double-click to enlarge this GDX daily chart. The technical action is generally healthy, but Stochastics is now overbought and there’s a slight RSI non-confirmation with the price.
- A pause ahead of Friday’s PCE seems logical. Gamblers and grub stake buyers should look for GDX to trade around $37.50 if gold dips to $2470... and buy there. More serious buying should be done if gold trades at $2430-$2410. That would likely see GDX reach its own support at $34-$32.
- This isn’t a time to issue top calls for gold, silver, or the miners. It is a time for eager buyers to prepare for buy-side action ahead of the PCE, and to prepare to be sporting a very golden smile, once that report is released!
Thanks!
Cheers st
Aug 27, 2024
Stewart Thomson Graceland Updates
website: www.gracelandupdates.com
email for questions: stewart@gracelandupdates.com
email to request the free reports: freereports@galacticupdates.com
Tuesday 27th Aug 2024
Special Offer for 321gold readers: Send an email to freereports@galacticupdates.com and I'll send you my free “Ten Dollars A Golden Share!” report. I highlight junior-intermediate miners trading under $10 that are poised for a big post-PCE surge! Key investor tactics are included in this report.
|
Graceland
Updates Subscription Service: Note we are privacy oriented. We accept cheques.
And credit cards thru PayPal only on our website. For your protection
we don't see your credit card information. Only PayPal
does.
Subscribe via major credit cards
at Graceland
Updates
- or make checks payable to: "Stewart Thomson" Mail
to: Stewart Thomson / 1276 Lakeview Drive / Oakville, Ontario
L6H 2M8 / Canada |
Stewart
Thomson
is a retired Merrill Lynch broker. Stewart writes the Graceland
Updates daily between 4am-7am. They are sent out around 8am. The
newsletter is attractively priced and the format is a unique numbered
point form; giving clarity to each point and saving valuable
reading time.
Risks, Disclaimers,
Legal
Stewart
Thomson is no longer an investment advisor. The information provided
by Stewart and Graceland Updates is for general information purposes
only. Before taking any action on any investment, it is imperative
that you consult with multiple properly licensed, experienced
and qualifed investment advisors and get numerous opinions before
taking any action. Your minimum risk on any investment in the
world is 100% loss of all your money. You may be taking
or preparing to take leveraged positions in investments and not
know it, exposing yourself to unlimited risks. This is highly
concerning if you are an investor in any derivatives products.
There is an approx $700 trillion OTC Derivatives Iceberg with
a tiny portion written off officially. The bottom line:
Are
You Prepared?
321gold Ltd |