Excerpt from this week's: Technical Scoop: Perking Oil, Gold Soar, Dollar Dive
Gold and silver
Source: www.stockcharts.com
The precious metals market wishes to thank U.S. Treasury Secretary Scott Bessent for his intervention in the bond market. It has sparked a big rally for gold, silver, and the gold stocks. Rather than view the U.S. Treasury’s intervention in the bond market (Operation Twist redux) as a positive, it instead views it as a sign of weakness and stress. As a result, the U.S. dollar sold off, and gold exploded to the upside. Bitcoin soared as well.
The background here is not forgiving and gold is, rightly, responding positively to the stress. Initially, long-dated U.S. treasuries saw yields fall. By the week’s end, they were mostly back up again from where they started. It also raises inflation concerns. None of this is good.
Gold rose 5.6% this past week to its best levels since May. We broke out over $4,500 and appear to be holding above, thus confirming the recent low at $3,941. Targets in a best-case scenario could be up to $6,200. Gold bugs will be elated. Silver also jumped up 7.2% but remains below breakout points at $71/$72. Our expectations are that silver should break out. Not to be left behind, platinum jumped 7.8%, while the near precious metals were also up, with palladium gaining 2.5% while copper consolidated recent gains, off a small 0.4%. The gold stocks, which have already broken out, saw the Gold Bugs Index (HUI) jump 12.6% and the TSX Gold Index (TGD) up 13.7%. The gold/silver ratio moved down to 66.59, off 1.5% in favour of silver. The
situation for silver and the gold stocks is positive. The gold stocks have quickly gone from down on the year to up on the year with the HUI now ahead 23.1% and the TGD up 23.5%. Thank you, Scott Bessent.
Source: www.stockcharts.com
Silver looks good and is poised to break higher. Once successfully through $71/$72, targets could be up to
$138. The gold stocks have already broken out. The HUI’s targets could be up to 1,080 and the TGD up to
1,225. That’s not that far away so there could be higher targets. Either way, gold stocks appear poised to move higher. Things are also stirring in the junior gold developers’ market. They primarily trade on the TSX Venture Exchange (CDNX). They should start to move after Labour Day.
The US$ Index has broken down once under 99.50. Targets appear to be down to 95. It should be a steady decline, not a crash, although the initial reaction following the U.S. Treasury’s move was a swift decline.
Again, we should thank Scott Bessent for pointing out what many of us already knew. There is a big problem in the $40 trillion U.S. treasury market.
Source: www.stockcharts.com
Source: www.stockcharts.com
Read the FULL report here: Technical Scoop: Perking Oil, Gold Soar, Dollar Dive
Disclaimer
David Chapman is not a registered advisory service and is not an exempt market dealer (EMD) nor a licensed financial advisor. He does not and cannot give individualised market advice. David Chapman has worked in the financial industry for over 40 years including large financial corporations, banks, and investment dealers. The information in this newsletter is intended only for informational and educational purposes. It should not be construed as an offer, a solicitation of an offer or sale of any security. Every effort is made to provide accurate and completeinformation. However, we cannot guarantee that there will be no errors. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the contents of this commentary and expressly disclaim liability for errors and omissions in the contents of this commentary. David Chapman will always use his best efforts to ensure the accuracy and timeliness of all information. The reader assumes all risk when trading in securities and David Chapman advises consulting a licensed professional financial advisor or portfolio manager such as Enriched Investing Incorporated before proceeding with any trade or idea presented in this newsletter. David Chapman may own shares in companies mentioned in this newsletter.Before making an investment, prospective investors should review each security’s offering documents which summarize the objectives, fees, expenses and associated risks. Although Artificial Intelligence (AI) may be deployed from time to time, AI output is monitored and adjusted, if necessary, for accuracy. David Chapman shares his ideas and opinions for informational and educational purposes only and expects the reader to perform due diligence before considering a position in any security. That includes consulting with your own licensed professional financial advisor such as Enriched Investing Incorporated. Performance is not guaranteed, values change frequently, and past performance may not be repeated.
About the author
Website: https://www.enrichedinvesting.com
Disclaimer: David Chapman is not a registered advisory service and is not an exempt market dealer (EMD) nor a licensed financial advisor. We do not and cannot give individualised market advice. David Chapman has worked in the financial industry for over 40 years including large financial corporations, banks, and investment dealers. The information in this newsletter is intended only for informational and educational purposes. It should not be considered a solicitation of an offer or sale of any security. The reader assumes all risk when trading in securities and David Chapman advises consulting a licensed professional financial advisor before proceeding with any trade or idea presented in this newsletter. David Chapman may own shares in companies mentioned in this newsletter. We share our ideas and opinions for informational and educational purposes only and expect the reader to perform due diligence before considering a position in any security. That includes consulting with your own licensed professional financial advisor.