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Gold, Silver, Debt, & Venezuela – What Comes Next?

This week we review the price movements of gold, silver, platinum, palladium, The US Dollar Index, & DOW. We look ahead at the possible direction and levels the gold price in 2019 could hit. We will then look at the silver price in 2019 alongside platinum and palladium prices. We also discuss the geopolitical instability and situation occurring in Venezuela.

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Gold, Silver, Debt, & Venezuela – Golden Rule Radio

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Transcript

Welcome back to Golden Rule Radio Today gold is moving a little lower. As with silver and platinum gold is currently trading around 176 on Wednesday. We’re reporting this afternoon. We’ve been talking about seeing some weakness in the metals for. Months now and we’re seeing what we want to see.

We’re approaching the seasonal time for the bottom to occur. If we look at the last few years we’ve had bottoms occurring in the metals market in the June July timeframe as well as November December so this is going to be the season when you want to get into the market and watch metals prices rise as we move forward in the next few years. We have some points to make about gold today that are both fundamental and some technical ideas. So where do you guys want to start. Well Robert we can certainly start at least looking at the gold chart. Also we’ve sort of laid out our game plan for the next couple weeks and just watching it progress. I’ll be perfectly honest I kind of thought we’d see lower gold prices by now. We have seen a little bit of a bounce over the last week or back up into the 12 to 80s but we are like you said pushing back into the twelve 70s so I’d expect to continue to see that stair step down to the 6 1 8 at about 12 45 probably coinciding now that we’re into May coinciding by end of May beginning of June where we should put in that seasonal bottom.

Yes some of this price here today was in response to the Fed announcement. And you know they they decided to leave rates unchanged and what happened is gold immediately bounced up about half a point from where it was and then it turned down in very short period of time just a matter of minutes it went from its Twelve eighty seven peak down to where you’re talking about now about the twelve 76. So basically down 1 percent from peak to trough but that’s relatively unchanged as you can see by the chart here versus where it started the day I’m not really sure that gold knows how to respond anymore to the Fed announcements because if they leave rates unchanged we did see some 1 percent volatility in a matter of minutes. If they raise rates it seems like it goes the opposite direction that would be strong dollar policy and yet you see gold climb when they drop rates what they’re talking about doing later. You see gold actually start to decline. So a little bit of a feel out process it was fun to watch today and let’s jump into the silver technical chart because it kind of showed real similar action.

Yes silver continues to do exactly what gold does just on a more aggressive and shorter timeframe down in the 14 60s as of this afternoon. But we did come down and kind of hit the first top end as the silver turned around back in late November December of last year where silver put in its bottom and began to stair step up. So it wasn’t surprising to see a little bit of a bounce there. However silver should likely continue down further down maybe into the low 40s or even the high 30s. If gold continues down into the 12 40s so we’ll continue to follow silver because that ratio is the name of the game here when it comes to metals investing and watching that correlation back and forth between the metals provides the opportunity to increase your positions over time based on how those prices relate to and change against each other. Yes speaking of that ratio the gold divided by silver ratio pushed up into 87 so gold actually if you look at the chart a little bit zoomed in gold actually with this decline today hasn’t broken this little formation we’ve formed in the last week whereas Silver has and has moved a lower moving to platinum. Platinum has come down into that previous high range around 875. It’s currently about 8 66 and it’s going to see some resistance here as we said a couple weeks ago we won’t be surprised to see it actually pull back a little bit more. But there are things with platinum that it’s too long to even list here for reasons of why you should be buying platinum today we’ve been talking about it for weeks. This is a good chance to be looking a little bit lower platinum price.

Yeah we’re relatively unchanged over the last week. So even though we’re down about two point seven percent today as you can tell by the chart look back a week and you know we’re recording at similar prices a week ago. So a little bit of volatility but overall unchanged over the last couple of weeks and that’s still you know we’re still up about 14 percent so far in the year in terms of where our low was earlier in the year whereas palladium it’s down two point nine percent today but four point three percent for the week. So it’s decline really since the end of March in my opinion kind of. As you’ll see the breakdown here continues a little bit. I don’t I’m not saying that the Palladium bubble has popped necessarily but down almost 16 percent a few more percent and you’re kind of technically in bearish territory.

Sure and I think all of this does get back to what you brought up a minute ago regarding especially today because today Wednesday.