RISE AND RISE OF GOLD

Gold continues to rise and as of 3rd September 2020, even as the US Dollar slides despite stronger than expected manufacturing data that was upbeat. The US manufacturing sector in the US is currently robust, probably due to the current tariffs being introduced on the China manufacturing sector. So where to from here.

On the Technical aspect, the support is seen near the 10 day moving average at $US1946. The target support appears to be near the 50 days moving average at $US1893. There is no doubt the bulls are pushing for Gold to rise above $US2,000 but with the way Global banks are struggling and runaway fiscal policy with Governments not making any calls, primarily because they have never been in this position before. It seems the money printing presses are running around the globe 24/7. Even with these they are hard pressed to print enough money to hand out as stimulus packages . Everyone it seems has their hands out for a top up. In Australia, Gold mining Companies have never had it so good. The price of Gold is just rising and rising and when you convert to Aussie $ it even gets better. However with the falling $US this may not last too long. With the US elections looming and the thought of Joe Biden getting into the White House, has the markets, really jittery, starting to get pulsatingly nervous.

Two things may happen. If Biden is elected the US is going to have to buy another set of money printing machines as his running mate and the baggage that comes with Biden will never be able to manage the US economy. I think that everyone is aware of that. This may have the effect of the $US crashing, but the silver lining is the price of Gold will rally like never before. $4,000 will be in site within 3 months if there is a Biden/Harris win. Even as it gets close, the market is trading out of the $US hedging that it will crash in Biden elected. Or Trump wins and the market goes higher and takes Gold with it.

One thing is for sure. Predicting anything in todays world, is not an art and it is not a sophisticated analysis based on history. Predicting anything, cannot be determined by academics or super computers, because, no one living on this earth at this time, knows what the result and final monetary, mortality tally My guess, probably armed conflict between the two “economic power” is going to be before or at the end of this pandemic.

Basically we all have to wait and see. Can you bet on Gold going to rise? That is one bet you cannot lose in the long run. Probably plenty of volatile days ahead and media and analysts predictions, but as we all know too well, most of the predictions from forecasters is based on their own pure and personal situation at the time of writing. If they are short on Gold or Gold stocks they will predict the price dropping. We all know that’s the way it really works. Everyone in it for themselves. So at the end of the day, your prediction will be the best one for you. You don’t hand your money to strangers to manage, so why listen to them. One thing is for sure, there is less Gold in the ground today than there was yesterday and the digging is getting deeper and deeper.

Goldman

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