Gold prices surge to new six-year high
- Gold rallies to US$1610 – short term high?
- ASX Gold Index has broken 2019 downtrend
- Gold stocks moving higher
- Small gold stocks starting to perform
- Shanghai breaks downtrend
- New interpretation for the gold market.
ASX Gold Index breaks short term downtrend
The bigger picture shows last month’s ‘BUY NOW’ call was spot on.
The A$ gold price is higher and is cementing its position above A$2100.
Exploration expenditure for gold is at a new record high.
Many small gold stocks are starting to perform.
Australian gold production is strong but off slightly in Sept Qtr 2019.
Although Iran is in the news today and gold went through US$1600 I am not convinced it is rising due to safe-haven demand and a general need to protect against market failure.
No doubt Iran has helped gold rise recently but I see a bigger picture.
Global equity markets are still strong and are anticipating an expanding global economy.
Reviews of so many US subsectors and global markets show some important and very positive changes are underway in the world.
The Dow 30 is strong and is indicating a boom to last for years.
Calls for a weaker US$ don’t make sense to me.
The strength in gold to me is confirming the strong underlying demand from Asia that has been fed by banks in the West that have gone short to deliver.
With US prosperity increasing, the demand for gold is rising so the banks are left with a major short position they need to cover.
This will be the driver in gold prices to much higher levels.
Gold is becoming not the crisis metal but rather the prosperity metal!
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