News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Gold and Silver Market Update

Gold and Silver Shy away from Initial Resistance

October 15, 2021 - (Gold Market Wire) - The Gold pivot level around the $1794 level was always going to be an initial challenge on the way up. It was right around this band - $1785-$1805 that we meandered during the summer for a fair amount of time, indecisively hemming and hawing. So, it's hardly surprising that the market took some fright at this first approach.

first 'joust' into resistance repelled...and convergence with the downtrend.

Likewise with Silver, our initial attack has been repelled.

...downtrend cleared, horizontal needs to be regained.

Given the move in Silver during Wednesday's and Thursday's sessions, a pullback should really be seen as healthy. We are heading into an important end of week close, and it will be interesting to see developments. We are of the opinion that these setback will soon be cleared. We are holding our length and looking at today's action to take more on board. We see the market as bullish. Inflation is not, repeat, not a passing phenomena. It looks serious and long term. Yes the economy is turning down - but so what? That deflationary pressure has little to do with the fact that the monetary system is closing in on its moment of capitulation. That simple fact, as well as a host of others, will be behind the next phase of Metals move higher. It is likely to be a significant one.

One, true, reflection of the encroaching inflationary trend is found in oil (and the energy complex in general). This is the real tailwind for the Metals, and it is looking stronger by the day. The crude oil bull market is just getting started in our opinion, and is going to be a real s-show. Europe is already freezing in mid-October. The politicians are panicking - realizing that their heads are on the line if people start freezing to death. They are telling everyone to prepare by distributing booklets around Germany and Switzerland about how to cook without electricity. When people start dropping, Greta Thunberg better find a safe place to hids - as the knives will be out for her. The political ramifications about dismantling the fossil fuel and nuclear energy infastructure of Europe before a viable alternative was tried and tested and in place, looks like mismanagement by government of the highest order. The UK's distribution network is in failure, and the panic that is starting is one with serious repurcussions. All of this government-sponsored failure is going to send the metals higher, and it looks like a problem without end in sight. Crude is staring to roar properly. Last time around we got a move towards $150 a barrel. This time looks like we could head even higher.

people with access to markets will need oil exposure - just to mitigate consumer costs!

When you combine all of this with what appears to be open revolt against government by the Chicago Police Force, you have a period of real history in the making.

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