Stars Align for Gold as Reality Begins to Hit
Gold was ridiculed and reviled when it broke its November, 2014 low of $1135 in July. The Fed was going to raise rates in September, the dollar was going to the moon, the economy was going to have a great second half and why own anything other than stocks. Gold was going to $1000, $850, $350, pick a number.
Stars Align for Gold as Reality Begins to Hit
Gold was ridiculed and reviled when it broke its November, 2014 low of $1135 in July. The Fed was going to raise rates in September, the dollar was going to the moon, the economy was going to have a great second half and why own anything other than stocks. Gold was going to $1000, $850, $350, pick a number.
Today looks a little different. Gold has broken out above $1135 where it broke down in July. Gold effectively sniffed out the economy and the Fed and the dollar. The second half economic recovery has evaporated as we predicted. The likelihood of a September rate hike is fast receding and the Fed is beginning to look trapped. The dollar has broken below its July low and has a huge speculative long position to unwind. The S&P 500 has broken below its 200 day moving average with apparent gusto.
What do Stan Druckenmiller, George Soros, David Einhorn and Paul Singer have in common besides a very strong track record as investors? They are reportedly buying gold and gold stocks.