Disregard all the hype, manipulation chatter, and the silly mantra stating that “Gold is now Dead.” The gold price was going to retest the $1,800 regardless of anything to do with Bitcoin’s price rise or Janet Yellen becoming Treasury Secretary. If investors understood the gold fundamentals and technicals, they wouldn’t pay any attention to the Mainstream Media white noise.
Subscribers to the SRSrocco Report knew that I forecasted the gold price was going to RETEST the $1,800 level for months. The gold chart below, now released to the public, published on September 18th, shows why I forecasted a restest of the gold price at the $1,800 level.
This is a quarterly chart of gold. Each candlestick represents three-months of trading. Using the quarterly chart, we can see a much different picture from daily, weekly, or even monthly charts. You will notice in 2011 and 2012; the gold price attempted to break through and close above the $1,800 level… 6 TIMES and failed. So, when gold finally broke above it in the third-quarter of 2020, there was a high probability that it would RETEST that $1,800 level before moving higher in 2021.
If you spend any time in the Day Trading markets, when a stock or commodity breaks through a long-term resistance level, it’s typical to retrace that level before heading higher. Because the $1,800 was such a strong RESISTANCE LEVEL in 2011 & 2012, it only made sense that when gold shot up to $2,100 quickly, it would retest the $1,800 level. This is exactly what traders expect to see. I am not saying it’s a guarantee… but that is the way the market works.
Over the past two months, I have continued to provide updates for SRSrocco Report Subscribers showing a retest of the $1,800 was inevitable. I also included a new technical indicator that I use in many charts now that the gold price would also likely retest the 5 EMA – Exponential Moving Average, shown below.
The gold price hit a low of $1,797 but closed at $1,804, according to StockCharts.com. Thus, a RETEST of the $1,800 level has finally been confirmed. And, this was going to happen regardless of all the completely WORTHLESS CHATTER on the Financial Networks, Mainstream Media, or Twitter.
So, where is gold heading now? Good question. However, if we look at the 5 EMA, it looks to me that gold will likely retest this level as well before setting up for a leg higher. I will be providing updates on the precious metals prices for Gold and Silver Members.
This is the kind of analysis we provide subscribers that you can’t find anywhere else. For example, we provided subscribers with the following two posts on technical analysis for MAG Silver and the Top Gold Miners, plus detailed analysis on why Kirkland Lake Gold’s share price underperformed in 2020.
I decided to make this chart public because of the CRAPOLA I see on Twitter. I spend some time positing information and debating individuals on the subject of the ENERGY CLIFF and EROI.
Gold was going to RETEST $1,800 regardless of BTC, Yellen, or whatever white noise is regurgitated in the markets.
The chart you should be looking at is the GOLD QUARTERLY CHART.
— SRSrocco Report (@SRSroccoReport) November 24, 2020
Actually, I posted my chart in response to the Ed van der Walt tweet, which you can’t see in the tweet above. I don’t believe Ed van der Walt believes gold is dead; he was being sarcastic. But, I wanted people to see that the $1,800 price was going to happen regardless of anything that happened in the market.
Gold is dead.
— Ed van der Walt (@EdVanDerWalt) November 24, 2020
Again, I will provide subscribers with updates on what the technicals are showing for gold and silver. However, the fundamentals will likely improve considerably next year as the Fed, and Central banks continue to inject massive amounts of money-injections and debt to prop up the crippled global economies.
U.S. Mint Silver Eagle Sales Top 4 Million In November
The U.S. Mint sold another half-million plus Silver Eagles over the past week. On November 17th, the U.S. Mint sold 3,456,000 Silver Eagles, then updated their website yesterday to show 4,081,000.
The total of Silver Eagles sold so far in 2020 is 28.6 million. It seems highly likely that the total will reach 30 million for the year, possibly higher. However, the U.S. Mint begins to set up for the new 2021 coins in December, so it will be interesting to see the demand and supply next month. Furthermore, Gold Eagle sales increased by another 7,500 oz to a total of 776,500 oz for the year compared to 152,000 oz sold for full-year 2019.
The CRAZY DYNAMIC of the precious metals market, especially for silver, is that even when the price of silver heads lower, like it is currently, it motivates more buying of physical metal. On the other hand, we are currently seeing a net outflow of metal from the global Silver ETFs.
We will see the silver price surpass $30 when the Fed and Central banks go ALL-IN to prop up the continued disintegrating global economies… especially if Congress passes the new FED DIGITAL DOLLAR POLICY. Talk about consumer price inflation. If the Fed Digital Dollar Policy goes through, that would be a good time to own some precious metals.
DISCLAIMER: SRSrocco Report provides intelligent, well-researched information to those with interest in the economy and investing. Neither SRSrocco Report nor any of its owners, officers, directors, employees, subsidiaries, affiliates, licensors, service and content providers, producers or agents provide financial advisement services. Neither do we work miracles. We provide our content and opinions to readers only so that they may make informed investment decisions. Under no circumstances should you interpret opinions which SRSrocco Report or Steve St. Angelo offers on this or any other website as financial advice.
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