Stay Up to Date with Robin's Market Updates

By providing us your personal data (i.e. name, email address and phone number), you acknowledge and consent to our collection of your personal data for the purposes listed below: • Sending you marketing, advertising or promotional materials related to the content of this website, whether by call, text or email; • Provision of products & services which you have requested for. Please note that you are entitled to withdraw your consent for the collection of your personal data at any point in time by clicking on the "unsubscribe" link in the emails you receive. You may also contact us via robinhosa@phillip.com.sg

Tuesday, June 25, 2019

Four Signs the Gold Bull is Back

Gold break out of 6 years downtrend. I have called a buy on Gold since my market outlook on 23 mar when gold prices was at 1315. Back then the call to overweight on gold was the bearish outlook for the US dollar, the impending recession due to the inverted yield curve and the expectation of the central bankers reverting to another monetary stimulus in the form of modern monetary theory if recession sets in.
I see 4 signs why the gold bull run is back. First, despite a strong dollar gold was quickly closing in on multi year highs. Second, and perhaps more important, gold mining stocks are outperforming Gold for the first time in many years. This is evident in the Gold ratio index. Because gold stocks provide leverage to the price of gold, they tend to move faster than gold if it is a real bull run. Thirdly Gold is also outperforming the other precious metal like silver and platinum. Fourthly. the world’s biggest central bankers are all preparing to flood the world with “easy money” again and add in the rising Middle East tension and your can expect a explosive move higher.


All posts and charts are for educational and illustration purposes only

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.