Must Read: "The next $200 is more likely higher than lower”
Market Rundown
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Today:
Market Rundown
Trader’s Comment
Zen Moment: Dog Hockey
1- Market Rundown
Good Morning. The dollar is down 32. Bonds are somewhat stronger. Stocks are mixed with the Dow down slightly. Gold is up $15.00. Silver Fu are up 32c. Oil is down 68c. Nat Gas is unchanged. Bitcoin is up 3% and ETH is up 1.4%
2- “Gold’s next $200 is more likely higher than lower”
Goldman’s trading desk commentary is reserved for their better seeded ideas, and not usually immediately actionable. Their messages are less like “Buy it now” and more like, “We’re keeping an eye on this” which is how actual traders usually converse.
The last 2 appearances in one of these professional reports, Gold did quite well within 3 months afterwards. And we covered them extensively:
PREVIEW OF GOLDMAN ON GOLD- Jan 2023
This one is in the same vein as those prior ones. Brief and to the point. One densely worded paragraph in this report is dedicated to gold, but a paragraph is enough as it gives reasons and calls a shot.
And since we are always on the look our for signs we spotted it.
“The next $200 is more likely higher than lower”
The reasons given are not only accurate (and to be fair ever-present), but one of them reminded us of something John Paulson said here last year when he bought just before things got going.
From: John Paulson on Why Gold Goes Parabolic
Yeah, we do. There’s a very limited amount of investable gold. It’s on the order of several trillion dollars, while the total amount of financial assets is closer to $200 trillion. So as inflation picks up, people try and get out of fixed income. They try and get out of cash. And the logical place to go is gold.
And that means…. The trader is reading minds, or Paulson’s narrative is catching on. What the trader is saying in short order is simple:
Gold is about $50 away from a new ATH
CB buying is underpinning this move
There is less gold available for purchase by the public.
The fund buying is not as short-term hot money as it used to be
Gold is going up