UPDATED (with Charts): Why Gold and Stocks are Rallying

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"There are no more shorts in Gold, only longs waiting to buy."

Marco, a Premium subscriber asked a very timely question regarding Gold’s recent action. one we have been asking ourselves the past few days.

We’ve been saving this excellent meme for just such an occasion…

Credit: Forexlive

Sir... looking back just no more than one month' time... it's only my impression or the pace of things is accelerating? Very difficult to preview the future I know, but... next month?

Reading You and other institutional guys (MacLeod) in the last days, I perceive just a sort of...

How can I describe it? restlessness? expectation?

Happy Easter!

Here was our initial reply to Marco:

Great question! Answer is acceleration. reason is unknown yet.

I suspect it is china based and policy-related, as opposed to some Gold specific type event based on US stocks and the Dollar price action as well.

Will reply in more detail in a post to all today.

Here is more detail (1,200 words) for all and some logic behind the opinion as well as a report from Goldman just out that lends credibility to the idea.

Sections:

1. Tactical Acceleration.

2. Breaking it down

3. No Bazooka For You

4. Frontrunning Xi: Stocks, Gold, Silver, Bitcoin

5. Someone is Spending Their Money Fast

6. Charts: Market Behavior Since Feb 12th

7. Bottom line:

8. But why?

9. But who?

10. Goldman: Maybe Bazooka now?

11. What About BRICS Mandates?

12. What Happened Last QE?

13. IF WE ARE RIGHT:

14. THE RISKS: