CNBC and their guests are negative on Gold. Based on economic growth, supply/demand, gold overvaluation, higher upcoming interest rates, calmer geopolitical environment going forward, technical setup, etc…..anticipating gold to crater.

Here is what they don’t get.   

None of them can anticipate nor predict the bear market of 2014-2017 and a severe recession that our mathematical and timing work so clearly shows. Further, even though most people anticipate Janel Yellen to continue tightening and raising interest rates, it’s not going to happen. Not when the US Economy slips into a severe recession and the stock market craters. If nothing else, Janet Yellen will be trying to re-inflate the market by pumping a lot of credit/money into the system around this time next year.

I am a firm believer that Gold is starting to signal just that.  Any break above $1,420 will be a confirmation of the fact. Based on our mathematical work, Gold Bugs don’t have that much longer to wait. If you would be interested in learning when the bear market of 2014-2017 starts and it’s internal composition, please CLICK HERE. 

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CNBC Is Negative On Gold. Time To Buy?  Google

 

Did Yellen just ruin the gold trade

It was all working for gold. And then Janet Yellen spoke.

In her first news conference as the Fed chairwoman, Yellen seemed to imply the Fed might raise short-term rates sooner than many market participants expected.

Immediately following those remarks, gold continued to head south, capping off a four-day stretch in which the shiny metal has lost almost 5%. The move also marks quite a reversal for gold, which was in the midst of its best Q1 performance since 1985.

So is that as good as it gets for gold? According to some traders: Yes

“Gold is a competitor to cash in a zero interest rate environment,” said Kathy Lien of BK Asset Management.  “But when interest rates are on the rise, or expected to be, gold becomes a far less attractive investment.”

Traders point to some recent changes in the overall market that could provide significant headwinds for gold; higher rates, a stronger dollar and an easing in geopolitical tension.  

Now that Ukraine has cooled, “the need for safe haven seems decreased,” said Gina Sanchez of Chantico Global . 

Those factors are unlikely to change in the near-term. 

“You still have increasingly hawkish central banks and overly bullish sentiment in gold,” said Enis Taner ofriskreversal.com. “That’s probably not changing anytime soon.  I expect gold to be range-bound between $1,200 and $1,400 for the next few months.”

Unfortunately for gold bugs, the technical set up isn’t looking much better. In fact, according to Steven Pytlar of Prime Executions, the charts point to more pain for gold. 

Said Pytlar, “we could see a substantial drop to $1200.”