Gold:I See Green Shoots

By Stewart Thomson / September 29, 2020 / www.321gold.com / Article Link

Stewart Thomson
email: stewart@gracelandupdates.com
email: stewart@gracelandjuniors.com
email:admin@guswinger.com

Sep 29, 2020

For a look at some important price action on the daily gold chart, please click here now. Double-click to enlarge this short-term gold chart.

There’s a double bottom pattern in play, and it comes as the reaction reaches decent support.

Please click here now. Double-click to enlarge this daily chart.There is a convergence of trendline support in play right now, and I’ve urged investors to consider taking modest buy-side action.

Please click here now.I’m not alone in seeing green shoots in the gold market.

UBS analysts have a solid track record, and they also are positive on the price today.

While silly American democrats and republicans have fist fights in the street as government debt becomes truly insane, Chinese gold-oriented citizens prepare for their biannual (twice a year) “Golden Week” holiday.

This year’s good times begin on October 1, and I urge the Western gold community to take a hard look at the incredible historical performance of gold following this awesome celebration.

To do that, please click here now. One of my Asian subscribers sent me this fabulous set of charts... charts that highlight the importance of this time period for investors.

I’ll also note that the next US jobs report is October 2, and gold often rallies in the days following the release of that report.

In addition, the latest COT report shows the commercial traders buying gold contracts on the COMEX.

The bottom line:Green shoots are appearing in the gold market, and investors need to take action!

The employment situation for American small business is dire.Big companies are doing well, but only because of the trillions of dollars in government handouts.

These handouts (paid for with borrowed and printed fiat funny money) allow waylaid workers and business owners to keep buying products from the big companies.

Please click here now. A second tidal wave of the Corona virus would devastate what’s left of small business in America.

Governments don’t like to prepare for a crisis of any type.They enjoy bragging about themselves, spouting propaganda about “big future growth”, and of course they ice the rancid cake by ramping up debt regardless of whether times are good or bad.

American citizens had no training for a virus crisis.The government had no stockpile of masks and personal protection for the citizens... and never encouraged citizens to stockpile themselves.When there’s no preparation when a pandemic happens, all a government can do is deny there’s a problem or lock everything down.

In the case of the US government, they did both; they denied there would be a problem, and then they locked the economy, obliterating small business that is the bulk of US GDP.Then they tried to re-open everything before the virus was wiped out.They are still trying to do that.

This opens the door to the nightmare scenario of a second tidal wave.

Of course, this is all spectacular news for gold investors who survive the pandemic, because regardless of who wins the election, fresh borrowed and printed money handouts are coming.That is inflationary.

Because small business and low-income workers aren’t financially recovering like big business and the rich, even if there is no second wave the government is almost certain to continue these handouts.

If there is a second wave, the government will likely launch “handouts on steroids”.If that happens, green shoots on the gold charts will become redwood trees!

Please click here now. Double-click to enlarge.The price reaction for GDX and a lot of big miners has morphed into a large rectangular drift.

Basis “Edwards and Magee” technical analysis, there’s about a 70% chance of an upside breakout from this type of continuation pattern.

Against a background of “Golden Week” in China and “Golden Handouts” in America, GDX green shoots are here, and it should be clear... that fresh mining stock highs across the board are near!

Thanks!

Cheers
st

Sep 29th, 2020
Stewart Thomson
Graceland Updates
website: www.gracelandupdates.com
email for questions: stewart@gracelandupdates.com
email to request the free reports: freereports@gracelandupdates.com

Gold:I See Green Shoots

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