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Gold Remains Under Pressure

By Tim KnightCommoditiesSep 24, 2021 02:01AM ET
www.investing.com/analysis/gold-remains-under-pressure-200602946
Gold Remains Under Pressure
By Tim Knight   |  Sep 24, 2021 02:01AM ET
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In this upside-down world of ours, the only asset class which reliably sucks is the one you’d least expect: precious metals. Seriously, if you took a time machine back to the year 2011, when gold was over $2,000 per ounce, and told them that the U.S. government was going to bring up another $10 trillion in debt…………whoever you told would sell everything they had to buy all the gold and silver they could afford. And yet, incredibly, that would be just about the only money-losing asset they could muster.

As I type this, gold is down over $30 per ounce. For the past thirteen months, gold has done nothing but fall.

GLD Price Chart
GLD Price Chart

Silver is no better. In fact, as a chart, it’s even worse. A few days ago, during the Monday zaniness, I stated that the one and only thing I bought was silver (by way of October call options). I sold them the very next day at a profit. I’m glad I didn’t stick around. Precious metals are not to be trusted.

SLV Price Chart
SLV Price Chart

The truly worrisome thing is that the long-term chart for gold is turning to mush. It isn’t wrecked yeah, but by Jove, it certainly is looking flaccid. I have zoomed in on what should constitute a superb saucer pattern, acting as a bullish base. And yet, it’s been like nailing jelly to a tree:

GC-Gold Price Chart
GC-Gold Price Chart

Suffice it to say that my falling-out-of-love with gold, which took place a few months ago, seems to be, thus far, a pretty decent decision. And that’s a shame, because I was really hoping that gold would put the Fed in its place.

Gold Remains Under Pressure
 

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Gold Remains Under Pressure

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Comments (5)
Randy Rupp
RRIDAHO Sep 27, 2021 2:38PM ET
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been totally under banks control for 40 years hopefully about to change supprizing  how many people dont realize this.
Ryan Sorrell
Ryan Sorrell Sep 24, 2021 2:59PM ET
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Isn't gold actually being manipulated to make us move on?
la popeye
la popeye Sep 24, 2021 4:21AM ET
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woul be contrarian. each time you see a kind of systemic cloud coming, guess what ? precious metal are sharply down.guess why ? ammunitiin for central bank theough paper gold UNregulated.
Kristof Naessens
Kristof Naessens Sep 24, 2021 4:01AM ET
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Only the 'paper gold'.
milena villa escobar
milena villa escobar Sep 24, 2021 2:27AM ET
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Fix your time machine.  Buy gold and hold. Now it's just a matter of when
simone scelsa
simone scelsa Sep 24, 2021 2:27AM ET
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If and when precious metals *******up, they will do it in a very short time (catalysts could be: bullion banks having to follow Basel III, central banks pushing to re-evalue their  gold reserves or the market realising that inflation will remain unchecked). In that case, either you are in or it will be too late to catch that train.
 
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