iGold

Gold prices remain in a mid-cycle consolidation after the strong advance seen in first-half 2016. Seasonal influences are shaping up for strength by August and September. The gold to silver ratio looks to have topped, signifying an important low across the sector. Precious metals investors should continue to monitor the ratio as a leading indicator, which will give us hints as to the direction of gold’s pending breakout when it occurs later this year.

Click HERE to continue reading the full article for FREE on our partner site, Gold Eagle…

With France voting for Macron – and by default to remain in the EU – it is likely that fears of a European breakup have seen their worst over the intermediate timeframe. The dollar has received safe-haven status amidst euro fears over the past five years. Dollar strength has put downward pressure on precious metals.

A reversal higher in EUR/USD has begun. The last low in the euro (high in the dollar) of this magnitude marked the relative low in gold at $255 in 2001. Although diverse geopolitical and economic cross-currents will be impacting the gold market over the years to come, the importance of a 16-year cyclical high in the dollar (low in euro) as a backdrop should be at the forefront of long-term precious metals and commodity investors’ minds.

Click HERE to continue reading the full article for FREE on our partner site, Gold Eagle…

It is increasingly clear that events beyond the United States borders will play an important role in defining the trends over the next few weeks for the precious metals and currency markets.

Of course, the international perspective is a critical component of the long-term thesis for precious metals throughout this macro cycle. During the 1970’s, when gold rose over 2,000% between President Nixon’s breaking of the Bretton Woods accord in 1971 and its subsequent peak in 1980, the bull market was mostly a US dollar-driven event. Dollar-holders turned in their greenbacks en masse, causing the price of gold to rise.

In contrast, the current backdrop for the metals has the potential to be even more powerful than in the 1970’s precisely because we now see a worldwide case for precious metals ownership.

Click HERE to continue reading the full article for FREE on our partner site, Gold Eagle…

The surge above $1,265 for gold in the wake of the US retaliation against Syria, yet its failure to hold this level by Friday’s close, constitutes a “false breakout” in our technical work. False breakouts occur when an important resistance level is breached momentarily, but then buyers nearly disappear and new sellers show up, causing a reversal bar on the daily price chart.

False breakouts (or their inverse false breakdowns) tend to mark at least short-term reversals. However, the degree and length of the reversal cannot be determined simply from the single day of price action. It would be a mistake to think that all false breakouts portend major trend reversals. Perspective is key.

Click here to continue reading the full article for FREE on our partner site, Gold Eagle…

Three-month US Treasury Bills are now pricing in a hike for tomorrow’s interest rate decision by the US central bank. This leading indicator has been highly accurate since the first Federal Reserve Rate hike in December 2015. Below we show a two-part graph, with the 3-month Treasury yield on top, and the price of gold immediately below. Fed ¼ point rate hikes are highlighted by the black vertical lines:

Click here to continue reading the full article for FREE on our partner site, Gold Eagle…

Gold is back to within $40 of the most important technical level we have been watching since 2011: the primary declining trend shown in magenta on the 10-year chart below. The downtrend in question now comes in squarely at $1,300 – so a new test of the trend line could come as soon as this week:

Click here to continue reading the full article for FREE on our partner site, Gold Eagle…