From the “Just Mail It In Dept.” the following thought (not for the first time) crossed our mind: take the piece penned November 11, change its date to today and post it. After all, it was aptly titled “Again We Find Gold Again Boxed-In Again“. For with price settling the week Friday at 1271, en route making fresh lows for the year, we’ve Gold’s first weekly close back in The Box (1280-1240) since December 22.
Eight years ago to the day (June 22, 2010), Gold’s price settled above 1240 for the very first time. 14% of the trading days since then (287/2016) have found Gold settling inside of what we today refer to (ad nauseam) as The Box (1280-1240). Indeed if we view The Box as a single round number, Gold today is “unch” from where it was those eight years ago. And yet the ever-debasing stateside money supply as measured by M2 has since risen from $8.61 trillion to $14.12 trillion. What are we missing? “Well obviously a doubling in the price of Gold.”
Understatedly so especially given our “national debt” level of $21 trillion exceeds the country’s M2 liquidity by nearly 50%. Does this mean the dear old USA shall have to eventually succumb to an estate sale? “Tell the French they can have Louisiana back for its GDP of $216 billion, plus an option on the otherwise seceding Principality of San Francisco.” You think Gold’s got problems.
Nonetheless, now well into our ninth year of writing The Gold Update, one wonders — had we the foresight that since 2014 the yellow metal would be on a road to nowhere — if we’d have kept at it. Hindsight being 20/20, we have and shall continue to so do, albeit many might find putting the rouge on the sedentary porker week-in and week-out to be a chore such as to give up and move onto the next event. Not us, but it’s been an ornery ride across many-a-month from 2014-to-date:
As for Gold’s weekly bars from a year ago-to-date, the descending red dots of Parabolic Short trend are now eight weeks in length, The Box by its purple boundaries being thoroughly put to the supportive test. Should 1240 fall away, we’ll likely have to call away our forecast 1434 high for this year, The Box then technically morphing from support into resistance. Stay tuned:
