Inflation data vs gold sentiment
Dave Erfle, Founder of the Junior Miner Junky joins me to address how the recent US inflation data should shift some of the current negative sentiment towards gold. We also discuss how the larger miners and royalty companies have bounced and what needs to happen in the broad markets to help rotate some money into the gold sector.
Junior Miners On The Verge Of A Major Breakout
April 14, 2021 – Chris Vermeulen – The Technical Traders
“There is some pretty exciting price action beginning to happen in the precious metals miners which is a welcome relief to all of the holders who have had to ride the excruciating correction the past 8 months. Although we are still in a downtrend, when we sit back and look at the big picture, the metals and miners are possibly days away from creating a strong short-term buy signal to the upside. If we look at the GDXJ ETF, based on the chart pattern it looks like an 86% upside price rally from today. If this ETF can move up this much, the individual miner stocks “Golden Rocketships” have a higher beta to the index and can move 5-10 times as much.”
“The US Dollar is still in a long-term downtrend but on a short-term basis, we are at support and are seeing a bounce. We really need to see USD break 88 to see precious metals truly take off. There has been a really “frustrating” shift in capital the past few months with money constantly moving around with no real trend. ”
https://www.thetechnicaltraders.com/junior-miners-on-the-verge-of-a-major-breakout/
Gold needs/requires and initial Close above 1760, but perhaps of more importance, a Close above 1775. Silver needs/requires a Close above 28.40.
Real Inflation has been running 8-10%for quite awhile now (yrs/decades). CPI and other government/s stated/reported economic numbers are fictional in order to support their narrative.
Inflation is the Expansion of the money supply; while Deflation is the Contraction of the money supply. Higher and or lower prices (asset; rent; housing; utilities; education; healthcare etc….) are the by-product of the inflation/deflation itself.
Money velocity (or lack thereof) argument is made by the FRS apologists/shills.
Markets(active): https://tinyurl.com/3fjs3ex8
SPYs multiple MaxSat(7)s – it could be topping.
Gold was due for bounce after 8 month correction.
Sucker rally, gold and miners will go back down and will break that double bottom to wash out all gold bugs that are left.
We know that inflation will pick up due to covid lockdowns ending and we get everyone out and about. Big question is that inflation pickup sustainable. Everyone been calling for stocks to correct for months, all easy money going into stock mkt, and until this bubble pops gold is going nowhere. Global recovery over next year will cause the blow-off top and then money will then glow into gold and miners.