Author Archives: pmontesdeoca

HIGHER INTEREST RATES BULLISH FOR GOLD?

 

 

 

Summary

Our analysis suggests that the US dollar index may be due for a swing rally in the 93.50 range.

Based on enormous global debt and ultra-low interest rates that cannot continue, we are bullish long-term on gold.

For silver, we have come back to a level that is validating the capitulation or completion of this correction, activating buy signals at $16.33.

The US Dollar and Gold

In my last report published on January 29, 2018, on Seeking Alpha, we looked at the US dollar and gold relationship. We anticipated that the dollar had found some short-term support and had the short-term potential to rally up to 92.00 levels while the gold market had reached an overbought position and was due for a correction and a time for a consolidation.

Last week the US dollar index closed at 89.04. It appeared to be building a foundation for some kind

To read more click HERE

Is Gold Making The Spring Top?

 

 

 

 

Summary

  • We expect the US Dollar Index to rally backup to 92.00 levels.
  • Gold is overbought and due for a correction.
  • A time for a consolidation is at hand.

Dollar Rally?

One the highlights in the news last week was the world economic forum in Davos. On Wednesday, the US dollar struck a weaker note on the basis of comments by the US Treasury Secretary Steven Mnuchin. He said, ahead of the central bank’s policy decision, that he welcomed the weaker currency when the Euro was firm. The following day, President Trump negated these comments by confirming that he wanted a strong dollar. So there seems to be some confusion in defining the future path of the US dollar as the world’s reserve currency.

Last week the dollar was under pressure on expectations that the European Bank and Bank of Japan would normalize their monetary policies. The market then broke into the next phase of the bear market with Mnuchin’s comments.

If we put aside this political rhetoric, which seems to only confuse the market even further, the fact of the matter is that the US Dollar Index made a new low on Thursday of 88.25. On Friday, the market recouped a good part of the loss from the previous day, closing at 88.89.

The condition of the dollar seems to indicate that the price has reached an extreme level below the mean and that there is a strong probability that from this oversold condition we should see a corrective rally back up to the 92.00 levels over the coming weeks.

Upon completion of this swing rally…

To read more click HERE

GOLD AND BITCOIN : INVERSE RELATIONSHIP

 

 

Summary

There appears to an inverse relationship between Bitcoin and gold: one moves up, the other moves down; one moves down, the other moves up.

Based on Elliott Wave analysis, Bitcoin appears to have made a new low and is poised for a move up in the coming week.

The Bitcoin Investment Trust is a margin-free instrument that is traded on the OTC and allows traders with a set strategy to take advantage of Bitcoin’s extreme volatility.

Gold appears to be heading into a bearish period which suggests you should sell gold.

Based on my analysis, you should buy Bitcoin and sell gold in the coming week.

To read more CLICK HERE

 

Is Silver Ready For Takeoff?

 

 

Summary

All indicators show that gold is poised to make a major move up.

Silver has set a firm bottom and is also ready to burst to the upside – although it may move down first – providing an excellent, historic buying opportunity.

Fundamentally, silver is greatly undervalued given its wide range of uses and possible new use in thinner, more flexible touch screens.

Gold

Looking Backward: How Did Our January 1 Report Do?

In this report, I would like to review the monthly price action for the gold market since we published our last report on Seeking Alpha. On January 1, 2018, the price of February futures gold closed at $1309.

To read more CLICK HERE.

IS SILVER PREPARING FOR TAKE OFF?

 

BEAR FLAG = CONTINUATION PATTERN

BEAR FLAG = CONTINUATION PATTERN

Flags and Pennants are short-term continuation patterns that mark a small consolidation before the previous move resumes. These patterns are usually preceded by a sharp advance or decline with heavy volume, and mark a midpoint of the move.

*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale of any futures or options contracts. This report is for educational purposes only.

 

Search the Blog

Post Archives