Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Roars to Life
April 18, 2022 - (Gold Market Wire) - Gold has gapped higher after the long Easter break ends in much of the world, signalling the compelling truth that the multiple crises that the world economic and monetary systems face are not going away. In fact, as many Gold market participants have been warning for years, the embedded problems in the world economy have no real resolution other than collapse and reset. The Gold market certainly seems to be confirming this, and the horizon line for this reset seems to be approaching quickly.
Given our channel, we are, in fact, mid-stream, at present. The Gap is a big positive, and points to a lot of headroom for Gold to run. Our firm clearing of the horizontal marker today takes us into new territory. We look ready to run to the top of the channel, maybe after some back and fill.
The news of war isn't going away, and every step taken on the political front seems to ratchet tensions higher. Gold, of course, is going to respond to that, and it is. In short, Gold is doing its job - perfectly.
We would be remiss if we did not mention the fact that as the Euro starts to flirt with disintegration, we are in fact, approaching our "final formula", where we start to see Gold and the US Dollar rise together against every other currency. The Goldbugs don't like that, because they are mostly US-based, and insist that the US Dollar must fail. It probably will, when the monetary reset happens, but in the interim, the US Dollar just keeps going against all comers: the Euro, The Yen, Sterling, even the Swiss franc. It is a worthless prophecy of markets to insist the US dollar is "finished" ... for a decade, and then exclaim :I told you so" - when it eventually happens. That's is the babbling of children. If you don't get the timing right - frankly; "Who Cares"?
The most important of these impending fx disasters, and the most pertinent, is in the Euro. The chart is now screaming fin de Siecle.
Before long this market will approach the critical juncture of 1.03 (and some change). If its starts to close underneath that level on a monthly basis, we may see one of the greatest monetary unwindings of the past 200-odd years. Just imagine the changes to the world economy if the Euro starts to print .80 - .70 ... it will be monumental.
Ultimately, all we can say is, position yourself for the worst. Never let trading encroach on your core - your disaster insurance; because disaster is starting to look "odds on". SO hold on to your hats. This is going to be some journey.
And, for God's sake - hold on to your Gold!