Howestreet.com - the source for market opinions

ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

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

John is author or co-author of five books, including of The Money Bubble, The Collapse of the Dollar and How to Profit From It, Clean Money: Picking Winners in the Green-Tech Boom and How to Profit from the Coming Real Estate Bust. A former Wall Street analyst and featured columnist with TheStreet.com, he currently writes for CFA Magazine.

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.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.

September 24th, 2021

Posted In: Dollar Collapse.com

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site

*
*

This site uses Akismet to reduce spam. Learn how your comment data is processed.