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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (20527)	7/27/2016 7:37:41 AM
From: Goose94	Read Replies (1) \| Respond to of 204840

Gold: Fed & BOJ Are In Play The gold market is quiet, and there is seasonal softness. That may be about to change, as both the US and Japanese central banks are having policy meetings this week. The Fed meets on Wednesday, and the BOJ follows on Thursday. There is also some confusion in regards to the BOJ’s position on perpetual bonds, which are also known as helicopter money. On that note, please click here now. A few days after the BOJ and Japanese government officials met with Ben Bernanke, the BOJ released a statement from Kuroda that he is totally against helicopter money. Please click here now. It turns out that Kuroda’s statements were made back around June 17, weeks before he and the Japanese government met with Bernanke. It should also be noted that Kuroda said he was opposed to negative interest rates, and then engaged in that policy anyways. Will the same thing happen with perpetual bonds? The BOJ could make a blockbuster announcement on Thursday. The big questions for the Western gold community are these: Will helicopter money cause the yen to lose its safe haven currency status? If so, will that be positive or negative for the price of gold? Please click here now. Double-click to enlarge. Part of the reason I was able to successfully forecast the massive rally in gold from the late December 2015 lows was because of the giant top that formed on this US dollar versus Japanese yen chart. I don’t expect Janet Yellen to shock the market with a rate hike tomorrow. It’s Kuroda that is under pressure to announce something big, because Japan is slipping back into deflationary recession. Please click here now. Double-click to enlarge this daily gold chart. Technically, gold is in sync with the fundaments I discussed above. Gold is drifting lower in a nice bull wedge pattern ahead of the central bank meetings. Note the fabulous position of my key 14,7,7 Stochastics oscillator, at the bottom of the chart. Technically, gold is ready to charge towards $1375, $1392, and then surge above $1432, but whether that happens or not in the short term will depend on what the BOJ does on Thursday. The overall “background music” for gold is extremely positive. Institutional money managers believe more negative rate bonds are coming, and they view gold as a currency. Since gold pays a zero percent interest rate (and a positive one with India’s sovereign gold bonds), gold is becoming a favoured currency. While nobody knows for sure what the BOJ will do on Thursday, or what Janet will do tomorrow at the Fed meeting, please click here now. Double-click to enlarge. That’s the GDX daily chart. Note the blue support zone in the $26.80 area. To get richer with gold stocks, using the “nobody knows anything” mantra, investors cannot predict whether GDX will trade at $26.80, but they can prepare to take buy-side action, if it does! The $26.80 support zone can also be seen on the weekly chart. To view it, please click here now. Double-click to enlarge. Aggressive gold stock enthusiasts can buy right now, ahead of the Fed and BOJ meetings. More conservative investors like myself will typically wait for $26.80 before buying. All in all, it’s a super time to be invested in the precious metals sector, and I hope everyone is cheering for a gold-positive announcement from the BOJ on Thursday! Thanks! Cheers st Jul 26, 2016 Stewart Thomson