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September 24, 2021 | Today’s Chart: Gold Breakout Coming?

John Rubino is a former Wall Street financial analyst and author or co-author of five books, including The Money Bubble: What To Do Before It Pops and Clean Money: Picking Winners in the Green-Tech Boom. He founded the popular financial website DollarCollapse.com in 2004 and sold it in 2022.

Sometimes it helps to zoom out a bit.

For gold (at least when priced in US dollars), the past few years’ action has seemed boring, one might even say directionless. But move the starting date back and flip the graphical relationship between metal and currency, as 321Gold’s Stewart Thompson recently did, and the picture looks a lot more dramatic:

gold breakout

Since the US took the world off the last vestiges of the gold standard in 1971, the general trend for gold priced in dollars has been up (which on the above chart is represented as downward movement). Said another way, the dollar has been falling versus gold.

That’s not a secret, of course, but note how close gold is to its multidecade channel. Peircing $2,200 would do massive technical damage to the dollar and leave gold with a lot of room to run.

Prediction: This breakthrough happens on the day the Fed retracts its recent tapering talk and promises easy money forever. Early next year, in other words.

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September 24th, 2021

Posted In: John Rubino Substack

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