The Fed leaves rates unchanged for August, but going against Trump, plan for another hike in September with possibly one more hike later in 2018. We cover how the markets reacted including the global currency markets. Gold in relation to longer term averages is reaching key levels along with important levels in the short term. We’ll review the price movements of silver, platinum, & palladium as well as the US Dollar Index & more. Thanks for listening to this week’s Golden Rule Radio, if you enjoyed the video please thumbs the video up and subscribe for more.
Fed Leaves Rates Unchanged As Uncertainty Looms - Golden Rule Radio
Welcome to our latest issue of ValueWalk’s hedge fund update. Below subscribers can find an excerpt in text and the full issue in PDF format. Please send us your feedback! Featuring investors exit long-short hedge funds, the oil market is now "broken", and Haidar Capital surges 225%. Q2 2022 hedge fund letters, conferences and more
Welcome back. The golden rule radio. Oh it's been one of those days with the Federal Reserve not raising interest rates a big yawn. And the markets did a big yawn as well especially the gold market trading flat in the silver market.
Well initially I think gold priced in an expected move because it did drop about ten dollars in the morning and I was getting a little nervous with flirting with that 12 12 support level again that Miles has been preaching about but didn't happen and it did it came back up. All said and done. Not a whole lot of change.
Yeah but I think there are a couple of things we've got to focus on gold wise I was talking to Drew our company coin buyer here who's also been a bit of a chartist himself for a while longer than I've been alive. And Drew and I were looking at a few things on the chart after a meeting on Tuesday. There some fascinating things not just with the trend lines and RSI aside divergence that I've talked about but also with moving averages you know Drus Drewes a long term investor. You know he looks at the 200 day the 40 week moving average he looks at the 325 day the 65 week moving average and it really does help paint a broader picture. So obviously you're looking for those longer term moving averages to change direction that gives you a better understanding of how trends moving. But that doesn't mean you can't break below them when they're growing up and it doesn't mean you can't go above them when they're going down. So he and I kind of tracked out the last year and a half on how gold is priced based on those moving averages and if you actually go back exactly sixty five weeks from this week we had a break below the moving average similar to this lasted about five weeks and then we had a reversal and a push up that lasted about nine weeks. So we went looking for that pattern back throughout the last couple of years. And we do see kind of a repeating pattern in how the moving averages correlate to the price and how quickly it takes price to reverse after breaking that. So after about five weeks below the moving average this go around. Coming into what Robert's been talking about for months the seasonal pricing in gold what I've been talking about for months Fibonacci levels trend levels so on and so forth. Here's just one more thing to add to the pile to say if we have a turnaround after this five week downside we should see gold resume pricing back up to the moving average at about 12 85 which is also a number we've talked about and then pushing up to retest the old ties 13 60 within about nine weeks. Low and behold that brings us to November which we historically show highs before we have the December sell off. So timing. While I don't like to talk about timing and metals pricing or really in any market because you just don't really know it's real hard to say oh this happens this time of year so on and so forth there is something to be said for that when you stretch that timeframe out far enough.
Yeah I really like that Miles. I think that that could be what we watch play out. But time will tell. I think patience pays and we'll see that. I want to say in relation to us charting just the gold price. Look at the platinum gold ratio and the gold price alone. When I look at the platinum gold relationship doesn't really matter to me a lot because I'm looking at increasing the total ounces using those ratios. So we've emphasized this before but the ratios are what matters so that we can increase total ounces of a portfolio. If you have questions about that you feel free to call us. Moving on to silver silver relate with the gold action we've seen.
You know not a whole lot has changed. If you're keeping an eye on again value if you're keeping an eye on the ratio I'd say it's not real fun to watch prices come down and Silver has been no exception. But the fact of the matter is I kind of feel like a broken record I don't know if you guys do. Every summer I'm sitting there telling clients if you're going to add.