TSXV:MARV - Post Discussion
Post by
moneywagon on Nov 13, 2021 10:14am
MARV WHAT DID GOLD DO THIS WEEK & WHAT'S DECEMBER FUTURE?
@Excelsior Gold Breaking Out Amid Loss of Investor Confidence in the Fed David Erfle – Friday November 11th, 2021 https://mailchi.mp/913085ed001c/david-erfle-weekly-gold-miner-sector-op-ed-1600294?e=3ac1473fe4 “The news headlines this week, along with the rising $gold price, is implying investors across the globe have finally accepted that #inflation will continue to run hot. Despite the best efforts by #CentralBanks to convince them that surging prices of most everything is transitory, December Gold futures are headed for their biggest weekly gain in six months. The gold price has also moved sharply above both its 50-day and 200-day moving averages.” “Inflation fears are returning to the fore, with China’s higher-than-expected consumer and producer prices being the latest in a series of red flags about risks to the world economic outlook. China’s October Consumer Price Index (CPI) climbed 1.5% compared to a year ago, exceeding market forecasts of 1.3%. Factory gate inflation climbed 13.5%, which was its highest print in 26 years.” “Amid the reaction to the U.S. CPI data this week being the highest in over three decades, the gold price managed a headline grabbing technical breakout above key resistance at $1835 as real yields tumbled to fresh record lows. ” “After last month’s inflation data exceeded expectations, gold was pressured by investors fearing the Fed raising interest rates sooner than previously anticipated to tame inflation. Higher interest rates tend to dampen demand for gold, which is a zero-yielding asset.” “However, since the Fed continued its “inflation is transitory” mantra during the FOMC meeting last week, markets are finally beginning to realize the world’s largest central bank is between a rock and a hard place regarding monetary policy. The Fed “using its tools” has been unable to bring inflation down without reaching maximum employment, and the economy is unable to reach maximum employment under President Biden’s authoritarian mandates.” 3
@Excelsior $Gold Reaches ‘Escape Velocity’ Michael Ballanger – Streetwise Reports (11/11/21) https://www.streetwisereports.com/article/2021/11/11/gold-reaches-escape-velocity.html “Having just witnessed the singular most impressive performance for gold since March of 2020, last week marked the passing of a couple of significant milestones with the first being the seemingly inescapable pull of the three moving averages (50, 100, 200-day) and of even greater significance was the second: it was the first Non-farm Payroll Report (“jobs report”) Friday where the number came in as a significant “beat” (higher than Street forecasts) but where gold and silver refused to decline. In fact, not only did #gold rise against a strong U.S. #dollar, but it also blasted through and away from resistance, closing on the highs for the day and the week.” 2
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