Money flows may be turning to precious metals to hedge. Gold could reach new highs in the coming weeks, in my opinion.
Last Thursday, I tweeted the following:
Follow Up: Gold finished Friday above the October high and confirmed my outlook. Today’s breakout above $1840 (bottom chart) supports a strong run for precious metals. Throw in some easy money liquidity, and we could see fireworks over the coming weeks.
GOLD DAILY (yesterday):
Gold prices are approaching critical resistance around $1840. An upside breakout in the coming days would be bullish, in my opinion. Failing to break out above $1840 will keep prices stuck in consolidation.
GOLD DAILY FUTURES (now):
Gold is breaking above $1840 with ease as consumer prices increased 0.9% versus the expected 0.6%. This may be the beginning of a strong run if gold prices play catch-up to true (non-transitory) inflation.
Final Thoughts: That rip-your-face-off rally mentioned in last week tweet may be starting.
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For regular updates, please visit here, or follow AG on Twitter at https://twitter.com/ag_thorson
