The level of risk on all financial and geopolitical fronts is growing exponentially, which requires a careful review of all investments and retirement funds. Events developing on warfronts around the world this year combined with political unrest surrounding an upcoming U.S. presidential election in November are unpredictable and will determine our future. Let’s begin today with how gold preserves your purchasing power, a link garden to prescient commentary since mid-May, a technical analysis on the gold and silver charts, and then go to a recent interview with Jim Rickards on current events and another with Judy Shelton on U.S. gold-backed bonds.
The precious metals gold and silver are sound money and primarily used as a hedge against the failure of prudent governance rather than the depreciation of fiat currency and inflation that follows. It is also true that monetary wealth does not deliver happiness, but it certainly helps with surviving the hard times. Capital preservation with gold is preferred by central banks, although the near-term upside potential for silver on a percentage basis as the “poor man’s gold” is certainly tremendous.
- Gold is becoming the new currency of the world – Money Control
- “British banks are all on the brink of collapse” – Godfrey Bloom (video)
- De-Dollarization: Coming of BRICS+ Monetary Ecosystem – Sputnik International
- $27,000 Gold – Jim Rickards
- Dollar so weaponized central banks hoard politically-neutral gold – Business Insider
- “Big Short” investor Michael Burry piles into physical gold fund – CNBC
- 90% of China-Russia trade is now conducted in Ruble & Yuan – BRICS News
- China’s Selling of Treasury and US Debt Rises to Record – Mish Shedlock
- The New Gold Playbook – Incrementum’s In Gold We Trust Report
- Alabama Abolishes Income Taxes on Gold and Silver – Money Metals
- Silver Surges in China to Record High – Katusa Research
- The Signs Are There: The Gold Standard Is Coming Back – Forbes
- Strong PBoC & Chinese Private Buying Boosting Gold Price – Jan Nieuwenhuijs
- Gold Fever – TheMacroButler
- Why are central banks buying so much gold – 11ONZE
- India moves 100 tons of gold from UK to domestic vaults – Reuters
- Louisiana Reaffirms Gold and Silver As Legal Tender – Money Metals
- Gold Overtakes Euro in Global International Reserves – Jan Nieuwenhuijs
- Thailand Joins China in Driving Gold Bull Market – Jan Nieuwenhuijs
- Vietnamese Investors Rush to Buy Gold – Money Metals
- South Korea’s Gold Bar Vending Machines Selling Out – ZH
- UK Royal Mint reports huge spike in gold sales after election – ThisIsMoneyUK
- Three Key Messages at St. Petersburg Int’l Economic Forum – Pepe Escobar
- Singapore to lead the gold market, said the World Gold Council – CNBC
- BRICS: Russia’s Moscow Stock Exchange Halts US Dollar, Euro Trading – Watcher
- Gold Production in Q1 – Mining Visuals
- Silver Production Q1 2024 – Mining Visuals
- Asian Consumer Demand for Gold Seen Staying Strong This Year – Bloomberg
- Record % of central bankers expect gold holdings to increase – MarketWatch
- Did the Saudis Just Kill the Dollar? (Petrodollar) – Jim Rickards
- Central Banks Expect to Buy More Gold This Year Amid Dollar Pessimism – WSJ
- Swiss National Bank presses ahead as interest rate cutting front-runner – Reuters
- Central Banks’ Appetite for Gold Hasn’t Been Satisfied – Money Metals
- Japan Banking Giant Norinchukin Liquidating $63 Billion In US & Euro Bonds – ZH
- Six reasons to buy gold now as price is up more than 14% in 2024 – CBS News
- US Debt Now High Enough to Threaten National Security – Birch Gold Group
- Comex: Gold Sees Highest Delivery Volume in Nearly 2 Years – Peter Schiff
- Trump Income Tax Repeal Promises a Revolution – American Conservative
- As Dominoes Fall, Gold Will Stand Stronger Than Ever – GoldBroker
- SLOWING INFLATION OPENS DOOR TO POLICY EASING – Fed’s Goolsbee
Below is today’s technical analysis for gold and silver. Rips and dips in the dollar and breaking news events combined with the dominance of automated trading decisions, HFT platforms, and artificial intelligence radically influence price action across all financial markets in either direction at all times within microseconds and cause bouts of extreme volatility. Be mindful that a window of opportunity for swing or scalp trading precious metal ETFs, spot, options, futures, or mining stocks does not necessarily equate to timing for layering core long-term positions or purchasing physical bullion and coins. To view a larger version of any chart below, mouse over it and select or right-click and choose a “view image” option.
Gold Spot daily chart as of Jun. 24 at 6pm ET…
Gold Futures Seasonality…
Excerpt from the May 10, 2024 (Twitter thread) weekly gold chart analysis:
“Gold’s 4-hour chart clearly shows a three-step pullback that bottomed out at $2,280 and the 38.2% Fibonacci Extension level. The price action printed a high of $2,378 at Friday’s close after challenging congestion at around $2,360 and a topside trendline drawn from the $2,431 all-time high on Apr. 12. On the weekly chart, gold’s entry into a secular bull phase may be forming a flagpole and Half Staff Flag that extends the rally to a third step at around $2,500 or higher this summer. Take note of those Fibonacci Extension levels. The DMI-ADX is still positive, the price is extended far beyond the 50 Exponential Moving Average (EMA), and the buy Volume bar was lowered last week. There might be some choppy consolidation before summer. Despite a pullback after leaving $2,100 in the dust two months ago, there is no technical damage, and the chart remains bullish.”
On May 20, gold printed an all-time high (ATH) of $2,450 at the 123.6% Fibonacci Extension level. The subsequent pullback pivoted at $2,288 on June 10 confirming an upper and lower trendline to form a bullish Flag Tilt. As noted in the May 10 analysis, a healthy consolidation phase is playing out that will create a solid base of support. A rally is in the cards this summer if gold continues to mirror its seasonality pattern while buying picks up in India as they stock up months in advance for the fall wedding season. The price action has run into minor resistance from the recent highs on Jun. 6 and 7 and at the trendline drawn down from the May 20 ATH while riding along the 50 EMA. With the DMI-ADX trending indecisive and buy Volume sporadic, it’s likely we’ll see additional chops in price before challenging the Flag Tilt’s topside trendline if news doesn’t spike the price first. The chart is bullish.
Silver Spot daily chart as of Jun. 24 at 6pm ET…
Silver Futures Seasonality…
Excerpt from the May 10, 2024 (Twitter thread) weekly silver chart analysis:
“Silver’s 4-hour chart shows a bullish Falling Wedge that formed and bottomed at exactly $26 on May 2 after printing a high of $29.78 on Apr. 12. There was strong buying at each step down that provided fuel for May’s rally that has printed a high of $28.75 and closed at $28.15 on Friday. After more than two years as resistance at a Fibonacci Confluence, the weekly chart highlights why $26 was a significant support level to be tested. The DMI-ADX is still positive, but the buy Volume bar was lowered last week. There might be some choppy consolidation before $29 and $30 can be left in the dust. The Throwback is a positive development, and silver is likely to leave $29 and $30 behind this summer. There is no technical damage, and the chart remains bullish.”
Silver printed a high of $32.50 on May 20 and descended into a consolidation phase that has formed a bullish Half Staff Flag. There is a Bear Trap zone between $29 and $30 with resistance just shy of $31. Despite the pullback, the lower trendline drawn upward since late February has not been violated while the price action is pivoting off the 50 EMA. A summer rally is on the horizon if silver continues to mirror its seasonality pattern this year. With the DMI-ADX trending positive and buy Volume sporadic, it’s likely we’ll see additional chops in the price action before taking out the Half Staff Flag’s topside trendline and challenging $32.50 if news doesn’t spike the price first. The chart is bullish.
Jim Rickards Warns Real Danger is Not U.S. Treasuries Collapsing but Something Far Worse – Daniela Cambone at ITM Trading, May 30
Judy Shelton on Gold-Backed Bonds & Trump’s Return – Daniela Cambone at ITM Trading, Jun. 12
Plan Your Trade, Trade Your Plan
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