World Cuts Rates; Gold will Soar Eventually; Short Until 1400
A lot of people have been asking me everyday why Gold and Silver, especially Gold has failed to rally despite the world cutting rates and banks printing money.
The answer is that this has to do with margin call covering. The unfortunate reality is Gold and Silver sell-off during equity bear markets as algo bots look to sell any pump to cover losses in equities.
The good news however is that this epic negligence in world banks' monetary and fiscal policy is giving the green light for a massive Gold and Silver rally but the time is not yet.
Before Gold rallies we can expect a value below 1400. How far below depends on how much more carnage we get in equities. It's very likely we see 1380-1400 with some potential that it dips into the lower 1300s as I see significantly more carnage in the US equity market.
For Silver - an industrial metal - its weakness is obvious and I expect Silver to plummet to near 10 bucks with potential it slips to 8 or 9 bucks.
The time will come for Gold and Silver but the time to long is NOT now. All rallies in Gold and Silver will be sold for the next at-least, 6-10 weeks before we can begin to see some stabilization.
- zSplit
SHORT ADVICE
- Short Gold until $1380-1400.
- Short Silver until $9.50-10.00.
LONG ADVICE
- Enter longs in Gold SLOWLY around $1400. Buy miners (JNUG, NUGT, GDX and/or GDXJ) at any level below $1400 Gold-Spot.
- Enter longs in Silver SLOWLY around $10.
The answer is that this has to do with margin call covering. The unfortunate reality is Gold and Silver sell-off during equity bear markets as algo bots look to sell any pump to cover losses in equities.
The good news however is that this epic negligence in world banks' monetary and fiscal policy is giving the green light for a massive Gold and Silver rally but the time is not yet.
Before Gold rallies we can expect a value below 1400. How far below depends on how much more carnage we get in equities. It's very likely we see 1380-1400 with some potential that it dips into the lower 1300s as I see significantly more carnage in the US equity market.
For Silver - an industrial metal - its weakness is obvious and I expect Silver to plummet to near 10 bucks with potential it slips to 8 or 9 bucks.
The time will come for Gold and Silver but the time to long is NOT now. All rallies in Gold and Silver will be sold for the next at-least, 6-10 weeks before we can begin to see some stabilization.
- zSplit
SHORT ADVICE
- Short Gold until $1380-1400.
- Short Silver until $9.50-10.00.
LONG ADVICE
- Enter longs in Gold SLOWLY around $1400. Buy miners (JNUG, NUGT, GDX and/or GDXJ) at any level below $1400 Gold-Spot.
- Enter longs in Silver SLOWLY around $10.
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