Gold’s winnings are damaged as Biden Bonks by Brainard
Well: but for two more trading days in the November balance, let’s continue with the usual month-end graph below, although Monday and Tuesday can blow us a long way from Kansas, Toto. With this in mind and buckled up, here are the BEGOS market stalls since the beginning of the year. The economically driven markets dominate the first three podium places, while the safe havens remain the followers. “Everything is great!” to the right?
Specifically for gold, as shown above -5.7% to that point in 2021, down here we have the weekly bars and parabolic trends, the persistent blue dotted long stance that has now been running for four weeks. Last week, measured a year ago, was gold’s third worst performance on both a point and a percentage loss basis. A bit of a heartbreaker that. Also called “Oh my god! Omicron! ”Is bullish for gold; however, “Powell” is the more Hawkish FedHead pick (bearish, but not really) for gold:
“You’re saying that because rising prices actually made gold rise too, right, mmb?”
Look out, squire. Not to forget, the Fed Funds rate rose from 1% to 5% from 2004-2006 and gold from 380 to 710. To reiterate, gold is now that of the scoreboard due to the devaluation of the US dollar (wildly bullish) noted 4001 worth.
In any case, the percentage price of gold moved sideways on balance year-on-year. Which in turn really underlines the “Live by the Miners, Die by the Miners” character of precious metal-based stocks, as can be clearly seen here:
For the record from that time a year ago when positive we only traded Franco-Nevada (FNV) + 5%, followed by gold itself -1%, Newmont (NEM) -3%, the Global X Silver Miners exchange Fund (SIL) -5%, the VanEck Vectors Gold Miners Exchange Traded Fund (GDX) -6%, Pan American Silver (PAAS) -12% and Agnico Eagle Mines (AEM) -19%. (Note for those of you who are lucky enough to score at home: The US money supply for the same period is + 12% compared to the gold supply only + 1% … Pssst: “Got Gold?” Again).
As for our economic barometer, last week’s list of incoming metrics only showed one negative: October’s durable orders (a volatile range in itself). The group’s balance sheet showed improvements including home sales (both new and existing) and personal income and expenses.
But the “turning a blind eye” Q3 chain deflator has been revised upwards: This is the party pooper, further highlighted by the Fed’s favorite measure of inflation – core consumer spending – which doubled its growth in October from September. “Hey Jay! Are you still bringing up on January 26th? ”Here is the Baro together with the little pullback in the S&P:
Next we go around the Horn with the BEGOS Markets, whose respective day bars click on the “Oh my! Omicron! ”Effect. And from the point of view of the safe haven, note the comparable net underperformance of precious metals compared to the jumps in bonds, euros and Swiss francs. The three penultimate front runners in the above-mentioned BEGOS Markets Standings also turned in the direction of ugly butts, namely oil, copper and the S&P 500. And with all these baby blue dots of trend consistency on the runners, a Santa Claus rally does not currently appear in the bids:
As far as the 10-day market profiles for the precious metals are concerned, be it on the left for gold or on the right for silver, they hardly look right from the respective body size. In fact, choosing “Powell” so far trumps any gold-positive fear of “Oh my! Omicron! ”:
And so gold has risen from stud to dud for November, the month bar on the far right is barely green any more. Gold’s attempt to secure the northern front again remains a battle royale:
So there is everything. Gold was on a November roll a little over a week ago – up 95 points (+ 5.3%) – albeit with already noticeably slowing momentum in our last report. Then on Monday Biden’s shocking bonking came from “Brainard” to keep “Powell” as FedHead, and from the monthly high of 1880, gold quickly fell over 100 points after the bonk. Even as a safe haven after the WHO surprise on Friday “Oh my! Omicron! “Cry, gold jumped a little, but did not hold the handle, the question was now:” Is gold slipping further? ” Regardless of this, we answer: “Just buy Gold’s Dip!”
Thank you very much!