I remain long GDXJ, but took some gains off the table..... HUI went to a cash position Friday on my daily trend trading chart..... We shall see if it's a whipsaw in the days ahead. I'm NOT an investor in this sector. I trend trade using the daily data...
World's Central Banks End Pact That Limited Selling Of Gold
Sat, 07/27/2019 - 08:45
His conclusion: "when the bills come due, politicians may start looking at something that rhymes with sold."
Perhaps, but on the other hand, states such as Russia and China will be more than happy to buy up whatever gold France and Italy have to sell.
Meanwhile, following the report, gold jumped to intraday highs, but to Fox, the jump could be a short-lived move if some of the abovementioned central banks begin selling their holdings to help support cash-strapped economies.
Then again, with global bonds yields now negative across virtually all of Europe, it would take nothing short of a crisis, or the ECB losing all its credibility overnight, for Italy or France to be unable to sell bonds in the current environment. Of course, if and when bond yields soar and central banks finally lose control of the bond market, it is distinctly possible that Italy will have no choice but to sell its gold. The good news - if only for gold bugs - is that when that happens, demand for gold from every other source - will be so high thanks to the scramble out of fiat and into hard currency, that any marginal sales will hardly be noticed as the price of gold explodes just in time for the global hyperinflation episode.
In any case, keep an eye on the gold market on September 26: that when the CBGA will officially conclude.
Edited by robo, 27 July 2019 - 12:13 PM.