Gold - 01/16/24

Chart of the Day: (01/16/24)

Gold: Open Position: 7%

• Gold is one of the most widely followed assets in the world and I think will start becoming the story again in 2024/2025. I believe money printing by the US Federal Reserve to help finance $10 Trillion in US bonds in 2024 alone will be the catalyst. 

• Print, print, print. They are not yet ready to abandon the paper empire.

• I think that’s what gold’s known all this time because it’s held its value in the face of US$ strength (bottom pane). Why has it done that? Because it knows. I think it knows what’s coming given that we have already experienced a tectonic plate movement in the world of bonds which we addressed in our Outlook 2024. The resilience in the face of the fastest meaningful interest rate increase in US history is also a major tell. 

• But it’s real structures, momentum structures are already broken out to the upside (first indicator pane) so now we are just waiting for the price to confirm that momentum.

• We have an open position in the Sprott Physical Gold/Silver Fund which has basically moved sideways for us over the last year. 

• I am not a gold bug. We will not sit on any asset for an extended period of time while it moves downward, or even sideways. Gold has been frustrating for some investors. 

• Over the next 1-3 years, I believe the only question investors will be asking is, "Do I have enough?". 

• Our Chart of the Day is intended to be a standalone technical chart. 

• We use them to highlight open positions, stocks on our watch list, or indicators that we believe are important, or just interesting at the time. 

• It is not a directional market call. 

• Feel free to share them with others who may be interested.