The Coming Debt Crisis, Currency Collapse, and Gold! (GC1!)
Hi friends! Welcome to this update analysis on the gold market, via the weekly gold futures contract (GC1!) Let's get right to it!
Looking at the gold market, we can see that price has been in a multiyear sideways consolidation. On the left side of the chart, you can see that gold made an all time high in 2011. Since then, gold entered a bear market correction, that has since produced a more than five year long sideways consolidation pattern. So, from the looks of things, the gold market has formed a strong base here. Additionally, there is a very broad V formation (in blue) on the bottom of this consolidation. What that is telling us, is that price may have already formed a bottom. The market was making lower lows, from 2013 to late 2015, but since then, price has made two higher lows — one of which we are rising from right now.
Additionally, we can see that the weekly gold chart has printed a golden cross, showing that the 50 MA (in orange) has crossed above the 200 MA (in pink.) That action is reflecting the fact that the market has been generally trending higher, since December of 2015. Furthermore, there has been a bullish weekly crossover on the MACD. You can see that it is currently testing the zero line, while price is simultaneously testing the 50 MA (in orange.) If price is able to surpass the 50 MA, that will cause the MACD to surpass the zero line, which would be a technical buy signal.
Given the current global economic picture, I believe that (fundamentally) gold has a hurricane of wind that is about to fill it's sails. The stock market is on the brink of breaking down from a decade long bull market — one that was created with cheap money printed by the Fed. The simple fact that the equity markets are reacting so dramatically to 0.25% interest rate hikes, while rates are at historic lows (2.5%,) is telling us that the market can't take it anymore. The Fed waited far too long to hike interest rates, and they've pumped the system with their quantitative easing (QE) program, for way too long. Now, the stock market is incredibly over-inflated. It's dramatically higher than it was in 2007, and debt has more than doubled since then. In case you've forgotten, debt (in the real estate market) was the reason why we almost slipped into a depression in 2008. Today, the debt is much worse, and the market is much higher.
I'm going on a tangent here, but I believe that this is possibly an orchestrated effort, by the US elitists, to retain financial dominance. It's the greatest transfer of wealth the world has ever known. They are intentionally doing this. They knew damn well that they were over inflating the market with QE. Leading into 2008, they knew damn well that they were allowing banks to engage in extremely dangerous financial practices, with subprime lending and credit default swaps. Think about it. How can the US maintain financial dominance, in a world where competition is increasing from developing nations, and our intellectual property is migrating over seas? How can we maintain financial dominance, when China is literally engulfing the US retail markets?
Here's how. Allow the banks to inflate a debt bubble in the housing market, via subprime lending practices and credit default swaps (2007.) Allow the Federal Reserve to print trillions of dollars into circulation and suppress interest rates (2009-2015.) Allow the trillions that the Fed printed, to reach the hands of investors, so that they can hyperinflate the stock market and generate a massive bubble in corporate debt (2009-present day.) Allow the auto industry to engage in subprime lending practices (2009-present day.) Dramatically increase the federal deficit. Allow the Fed to wait for entirely too long to hike interest rates, or halt their QE program (2009-2015.) Inflate an EPIC bubble in the bond market (early 2000s-present day.) Sell trillions of dollars of US debt to China (ongoing.) The list goes on.
And who did QE? The US, and some of it's closest allies.
Don't you see? They are literally engineering the greatest wealth transfer in the history of the world. We have already lost to China. Their products have consumed American retail, and the elites most certainly recognize this. Desperate times call for desperate measures. That's why it's very feasible, for this to be an engineered systematic collapse.
So, how can the US win by crashing the system? Well, one thing is for sure. We own more gold than any other country by far. If the US intentionally inflated the greatest debt bubble the world has ever known, and is intentionally going to pop it, they obviously realize that it could cause a currency collapse. So, if we see a dollar crisis emerge, guess what? The US owns far more gold than any other country. Gold is a historical store of value. It has acted as currency for millennia, and we have the vast majority of it. Not to mention other critical assets, such as oil reserves, various commodities, technology development, and so forth. I know this is a lot for a gold analysis, but I see the writing on the wall. Whether it was strategically engineered or not, the global debt bubble is set to destroy the world economy as we know it, and something far different is likely to emerge. Perhaps it will be a digitally based asset, such as cryptocurrencies. Did I mention that we have the world's most powerful and technologically advanced military?
Regardless, gold will always retain it's luster. When the market begins to collapse, investors will flock to their historical safe haven, more so than ever.
If price can get above the 50 MA, look for a move to around the 1356 area. Support above that will rapidly send gold prices to 1527. I say "rapidly," because there is little resistance between the 1400 and 1525ish.
Happy Holidays Everyone!
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Looking at the gold market, we can see that price has been in a multiyear sideways consolidation. On the left side of the chart, you can see that gold made an all time high in 2011. Since then, gold entered a bear market correction, that has since produced a more than five year long sideways consolidation pattern. So, from the looks of things, the gold market has formed a strong base here. Additionally, there is a very broad V formation (in blue) on the bottom of this consolidation. What that is telling us, is that price may have already formed a bottom. The market was making lower lows, from 2013 to late 2015, but since then, price has made two higher lows — one of which we are rising from right now.
Additionally, we can see that the weekly gold chart has printed a golden cross, showing that the 50 MA (in orange) has crossed above the 200 MA (in pink.) That action is reflecting the fact that the market has been generally trending higher, since December of 2015. Furthermore, there has been a bullish weekly crossover on the MACD. You can see that it is currently testing the zero line, while price is simultaneously testing the 50 MA (in orange.) If price is able to surpass the 50 MA, that will cause the MACD to surpass the zero line, which would be a technical buy signal.
Given the current global economic picture, I believe that (fundamentally) gold has a hurricane of wind that is about to fill it's sails. The stock market is on the brink of breaking down from a decade long bull market — one that was created with cheap money printed by the Fed. The simple fact that the equity markets are reacting so dramatically to 0.25% interest rate hikes, while rates are at historic lows (2.5%,) is telling us that the market can't take it anymore. The Fed waited far too long to hike interest rates, and they've pumped the system with their quantitative easing (QE) program, for way too long. Now, the stock market is incredibly over-inflated. It's dramatically higher than it was in 2007, and debt has more than doubled since then. In case you've forgotten, debt (in the real estate market) was the reason why we almost slipped into a depression in 2008. Today, the debt is much worse, and the market is much higher.
I'm going on a tangent here, but I believe that this is possibly an orchestrated effort, by the US elitists, to retain financial dominance. It's the greatest transfer of wealth the world has ever known. They are intentionally doing this. They knew damn well that they were over inflating the market with QE. Leading into 2008, they knew damn well that they were allowing banks to engage in extremely dangerous financial practices, with subprime lending and credit default swaps. Think about it. How can the US maintain financial dominance, in a world where competition is increasing from developing nations, and our intellectual property is migrating over seas? How can we maintain financial dominance, when China is literally engulfing the US retail markets?
Here's how. Allow the banks to inflate a debt bubble in the housing market, via subprime lending practices and credit default swaps (2007.) Allow the Federal Reserve to print trillions of dollars into circulation and suppress interest rates (2009-2015.) Allow the trillions that the Fed printed, to reach the hands of investors, so that they can hyperinflate the stock market and generate a massive bubble in corporate debt (2009-present day.) Allow the auto industry to engage in subprime lending practices (2009-present day.) Dramatically increase the federal deficit. Allow the Fed to wait for entirely too long to hike interest rates, or halt their QE program (2009-2015.) Inflate an EPIC bubble in the bond market (early 2000s-present day.) Sell trillions of dollars of US debt to China (ongoing.) The list goes on.
And who did QE? The US, and some of it's closest allies.
Don't you see? They are literally engineering the greatest wealth transfer in the history of the world. We have already lost to China. Their products have consumed American retail, and the elites most certainly recognize this. Desperate times call for desperate measures. That's why it's very feasible, for this to be an engineered systematic collapse.
So, how can the US win by crashing the system? Well, one thing is for sure. We own more gold than any other country by far. If the US intentionally inflated the greatest debt bubble the world has ever known, and is intentionally going to pop it, they obviously realize that it could cause a currency collapse. So, if we see a dollar crisis emerge, guess what? The US owns far more gold than any other country. Gold is a historical store of value. It has acted as currency for millennia, and we have the vast majority of it. Not to mention other critical assets, such as oil reserves, various commodities, technology development, and so forth. I know this is a lot for a gold analysis, but I see the writing on the wall. Whether it was strategically engineered or not, the global debt bubble is set to destroy the world economy as we know it, and something far different is likely to emerge. Perhaps it will be a digitally based asset, such as cryptocurrencies. Did I mention that we have the world's most powerful and technologically advanced military?
Regardless, gold will always retain it's luster. When the market begins to collapse, investors will flock to their historical safe haven, more so than ever.
If price can get above the 50 MA, look for a move to around the 1356 area. Support above that will rapidly send gold prices to 1527. I say "rapidly," because there is little resistance between the 1400 and 1525ish.
Happy Holidays Everyone!
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.