Gold Speaks Uncomfortable Truths
with MMGYS soundtrack
"For the game had never been fair, the dice were loaded. They were swindlers and thieves of pennies and dimes, and they had been trapped and put out of the way by the swindlers and thieves of millions of dollars."
Upton Sinclair, The Jungle
"Gold has worked down from Alexander's time. When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory."
“Absolute power does not corrupt absolutely, absolute power attracts the corruptible.”
Frank Herbert, Children of Dune
“Sometimes people hold a core belief that is very strong. When they are presented with evidence that works against that belief, the new evidence cannot be accepted. It would create a feeling that is extremely uncomfortable, called cognitive dissonance. And because it is so important to protect the core belief, they will rationalize, ignore and even deny anything that doesn't fit in with the core belief.”
"The press is the hired agent of a monied system, and set up for no other purpose than to tell lies where their interests are involved."
Henry Adams, The Letters of Henry Adams
The equity markets were divergent today, with the SP500 moving higher, but the tech heavy NDX finishing decidedly lower.
Gold fell, as the Dollar rose sharply.
Silver rallied once again, in step more with the SP 500. It has the appearance of a short squeeze.
Have a pleasant evening.
more cards here
“Right Now is When You Can Make 5x-10x Your Money Just Catching the Cycle” says $FURY CEO Tim Clark
Nov 30, 2023 #gold #goldstocks #goldinvesting
“Right Now is When You Can Make 5x-10x Your Money Just Catching the Cycle” says Fury Gold CEO Tim Clark. “The problem here is the market. The problem is the lack of liquidity in the junior space. But that will change. And I think my message to investors now is: I’m not asking you to go out and buy a huge chunk of $FURY. But I think you’d be prudent to buy some. Because once this market moves, because of a lack of liquidity, you’ll have a hard time getting in at a reasonable price and you’ll be sitting there doubting yourself as it is up 50% wondering if it is going to go up 100%. And if it goes up 100% you are going to be killing yourself that you did not get in.”
Currently $FURY has a C$78m market cap with a $61m treasury in $DV.v shares ($53m) and cash ($8m). So unlike most gold explorers now, the company does not have financing risk. Functionally, $FURY is currently a call option on Dolly Varden Silver ($DV.v).
SVP Exploration Bryan Atkinson reviews the just-released positive infill drill results from the Hinge Target at the high-grade Eau Claire gold project located in the Eeyou Istchee Territory in the James Bay region of Quebec. The Hinge Target infill program has increased confidence in the geological model and potential for expansion of the Eau Claire resource to the west. Drilling continues to intercept multiple zones of gold mineralization including 5.5 metres (m) of 4.52g/t gold and 3.0m of 3.34g/t gold from 23EC-069; 1.0m of 20.20g/t gold and 3.5m of 3.51g/t gold from 23EC-070; 1.0m of 19.55g/t gold from 23EC-066; and 3.5m of 3.82g/t gold from 23EC-067.
How you been starboy ?
$MUX McEwen Mining: Stable Gold Production and Huge Upside with Los Azules Copper Project
Swiss Resource Capital AG
Nov 27, 2023 #Gold #Copper #Kupfer
Interview with Chairman and Chief Owner Rob McEwen at the Precious Metals Summit 2023 in Zurich. McEwen Mining is a gold producer with several mines in North and South America and will reach the guidance of 150,000 ounces in 2023. However, the company's great potential lies in the spun-out copper project McEwen Copper, in which McEwen Mining holds a 47.7% stake and which is one of the largest undeveloped copper projects in the world. McEwen Mining shares bucked the trend, reflecting the company's success with McEwen Copper.
McEwen Mining Inc. ? https://mcewenmining.com/
Mining The Deep Sea Offers Green Energy Potential But Environmental Risk
Nov 27, 2023
From the Pacific Islands to the Arctic Circle, “In Real Life” goes to the frontlines of the debate over deep sea mining. As companies rush to the bottom of the oceans to mine rare earth minerals that could power future technology, conservationists push back on impacts on fragile marine ecosystems.
Refining Pure Gold From An 1800s Gold Mine!
Ghost Town Two
Nov 15, 2023
I took a trip to Washington state to meet up with my friend Jason at his gold mine from the 1800s. He is reopening the mine and was nice enough to allow us to take a tour and do some mining! We spent the day chipping out gold from the walls and refining it back at Jason's shop.
Rob McEwen, CEO & Chief Owner of McEwen Mining, presenting at the 2023 Precious Metals Summit Zurich
Nov 20, 2023
Thanks Tred Happy Thanksgiving to you and all 😊
Why the FED will revalue gold 2024 - LFTV Ep 149
Nov 17, 2023
In this week’s episode of Live from the Vault, Andrew Maguire reveals the Federal Reserve’s Achilles Heel: the exchange of deflating dollars to undervalued bullion, ask asks why anyone would buy treasuries when they could buy gold.
Andrew explains how global central banks are accruing physical gold ahead of this game-changing event. The precious metals expert and whistleblower reveals there may be only 35 trading days until a possible gold revaluation.
“Unless You Need the Money, Don’t Sell Junior Gold Stocks Here” says Fund Manager Dave Kranzler
Mining Stock Education
Nov 14, 2023 #goldstocks #miningstocks #resourceinvesting
“Unless You Need the Money, Don’t Sell Junior Gold Stocks Here” says fund manager Dave Kranzler in this MSE episode. Dave is the editor of the Mining Stock Journal. He returns to the program to provide his commentary on precious metals and reveal some junior gold stock picks. Dave holds an MBA from the University of Chicago with a concentration in accounting and finance. Over the years he has worked in various analytic and trading jobs on Wall Street. For nine years of those years he traded junk bonds for a large bank. For the past 16 years, Dave has been an avid student of the precious metals markets and steadfast proponent of holding physical gold and silver in one’s portfolio. Currently, he co-manages a precious metals and mining stock investment fund in Denver. Dave’s stated goal is to help people understand and analyze what is really going on in our financial system and economy.
Five Reasons Why Junior Mining Investors Fail explains Bill Powers (#4 blindsides newbies)
Nov 11, 2023 #smallcapstocks #miningstocks #resourceinvesting
Bill Powers explains five reasons why junior mining investors fail in this MSE episode. He shares numerous insights gained by firsthand experience over the past eight years of focused investing in junior resources stocks. Learn and heed all five warnings, if you have not already. Number four frequently blindsides newbies.
Video mentioned at 7:13 “Discerning Mining Promoter Claims”:
• Discerning Mining Promoter Claims wit...
Video mentioned at 8:47 “Discerning Bias”:
• Discerning Bias in the Mining Investm...
Video mentioned at 19:37 “Bre-X Scam”:
• Warren Irwin | Discerning Mining Stoc...
Video mentioned at 19:48 “Mining Scams”:
• Don’t Fall for Mining Stock Scams War...
MCEWEN MINING | Red Cloud's Fall Mining Showcase 2023
Red Cloud TV
3 days ago
Rob McEwen, Chairman & Chief Owner, Stefan Spears, V.P. Corporate Development, McEwen Mining joined us at Red Cloud's Fall Mining Showcase 2023, brought to you by Red Cloud Financial Services.
Wonder if Los Azules jewel city with hotel will have some other major attractions like the Cresta run.
Hey they got the ice ! hehe
The Cresta Run 125th Anniversary Film
I think thats Rob in green skeleton suit at 2:42 ish mark haha
Rob McEwen Discusses Mining And McEwen Mining
Nov 10, 2023
Rob McEwen has had a stellar career in mining, in this interview he shares his insights into what the mining industry needs and efforts they are making at McEwen Mining to be a leader of change.
McEwen Mining shares jump despite Q3 loss
with MMGYS sound track
Staff Writer | November 9, 2023 | 9:17 am Markets Canada Copper Gold
McEwen Mining NYSE: MUX) (TSX: $MUX shares are lifting off despite reporting on Wednesday a loss of C$18.5 million in the third quarter of 2023.
The Toronto-based company said it had a loss of C$0.39 per share, versus the Zacks Consensus Estimate of a loss of C$0.77. This compares to loss of C$0.21 per share a year ago.
The gold and silver mining company posted revenue of C$38.4 million in the period.
According to the miner, consolidated gold equivalent ounce (GEO) production in Q3 improved by 8% compared to both Q2 2023 and Q3 2022. McEwen produced 38,500 GEOs in Q3, and 104,400 GEOs for the nine months ended September 30.
The Fox mine complex in Ontario produced 11,200 oz. of gold and remains on track to meet guidance of 42,000 to 48,000 oz. for the year. The Gold Bar mine in Nevada produced 9,500 oz. of gold, an increase of 20% compared to Q2 2023. The San José mine in Argentina produced 17,800 GEOs, an increase of 3% over last quarter.
The company said it continues to advance exploration at Los Azules in Argentina, aiming to deliver all information required for the feasibility study.
During Q3, it completed planning and preparation work for the 2023-2024 drilling campaign, which has a target of 48,000 meters and includes additional exploration, infill, geotech, hydrological and hydrogeological drilling. The project is anticipated to produce an annual average of 322 million lb. of copper cathode over a 27-year life of mine.
McEwen invested C$18.5 million in Los Azules copper project during the quarter, primarily to build a winter camp, further improve road access, and to construct a logistics facility in San Juan.
The company reiterated its consolidated production guidance at the lower end of a range of 150,000 to 170,000 GEOs for the year.
Shares of McEwen surged 12.7% by 12:14 p.m. EDT Thursday. The company has a market capitalization of C$301 million ($218.5m).
Gold, Bitcoin rally over? Santa coming early for the S&P?
with MMGYS soundtrack
Jonathan Da Silva
Wednesday November 08, 2023 09:08
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Commentaries & ViewsShare this article:
I was wrong about gold consolidating for a quick upward move to its all-time high, but prices are still correcting via time rather than volatility.
The 4-hour chart below shows the breakdown from the flag, which sent the price down another $20 in a hurry. The yellow highlighted box is the same support zone I showed when I originally suggested gold was looking droopy on the daily timeframe before flipping and winding up wrong. I’m not sure the price gets all the way down there, though. I would give bulls the benefit of the doubt still, as I expect this sideways period to lead to a move higher, regardless.
As far as stocks are concerned, more specifically the S&P, I remain bullish. Notwithstanding the suggestion for a long at the exact bottom last week, the chart is providing every reason to stay long. Price looks ready to get up to the top of the Bollinger band range. Looking at momentum, there’s plenty of fuel to propel the move.
The Bitcoin 4-hour chart has the same look to it as gold did before breaking down, but thus far HODLers are proving resilient. I would beware of a correction such as is transpiring in gold if Bitcoin were to break below the bottom of the range shown in the chart below
Of course, like with gold, my view on Bitcoin as far as stacking it has not changed. For that reason - I would also give Bitcoin bulls the benefit of the doubt; that is, dips are to be bought, in my opinion.
Central Banks On Course For "Colossal" Year Of Gold Buying
Tyler Durden's Photo
BY TYLER DURDEN
FRIDAY, NOV 03, 2023 - 04:20 AM
After setting a record through the first half of the year, central banks continued to gobble up gold in the third quarter.
Gold Breaks Out of Inside Day: Bullish Momentum Building
By: Bruce Powers | November 3, 2023
• Amid strong upward movement, gold targets a breakout above the trend high, setting the stage for a possible new record monthly close in November.
Gold broke out of yesterday’s inside day today on a rise above 1,991.
It subsequently reached a three-day high of 2,004.
A daily close above 1,991 will confirm the inside day breakout and a close above the three-day high of 1,984 shows further strength.
Further, for the short term, a daily close above the middle of today’s range around 1,994 will show greater strength than a close below that level.
Canadian Gold Corp. Announces Exploration and Financing Update
October 31, 2023
Toronto, Ontario – October 31, 2023 – Canadian Gold Corp. (TSXV: CGC) (“Canadian Gold” or the “Company”) is pleased to announce the completion of its regional field exploration program, and that planning for a November, 2023 phase 2 drill program at the 100%-owned Tartan Mine, situated in the prolific Flin Flon-Snow Lake Greenstone Belt, Manitoba, is currently underway.
Canadian Gold Corp. Announces Non-Brokered $2.25 Million Financing, Lead order from Rob McEwen the Company’s Largest Shareholder
October 18, 2023
Toronto, Ontario – October 18, 2023 – Canadian Gold Corp. (TSXV: CGC) (“Canadian Gold” or the “Company”) announces that it has initiated a non-brokered private placement offering of up to $2,225,000, by the issuance of both flow-through common shares and non-flow through Units. Rob McEwen, the Company’s largest shareholder (37.6% of the outstanding common shares) has committed to purchase $500,000 of the Units.
Edward Huebert Appointed President and CEO
October 18, 2023
Toronto, Ontario – October 18, 2023 – Canadian Gold Corp. (TSXV: CGC) (“Canadian Gold” or the “Company”) is pleased to announce, with the endorsement of Rob McEwen (the Company’s largest shareholder – 37.6% of the outstanding common shares), the appointment of Edward (Ed) Huebert, as President, Chief Executive Officer, and director. Ed will be replacing Ian Ball, who was serving as Interim President and CEO.
Phase 1 Exploration & Development Update at Tartan Mine
September 27, 2023
Toronto, Ontario – September 27, 2023 – Canadian Gold Corp. (TSXV: CGC) (“Canadian Gold” or the “Company”) is pleased to announce additional drill results from its Phase 1 Exploration Program at the Tartan Mine, located near Flin Flon, Manitoba, which builds on the earlier drill holes that are targeting resource growth at depth (click here August 23, 2023 news release). The results to date indicate the potential for a larger discovery below the current resource estimate, which remains open for meaningful expansion. The Company is also providing an update on its regional field work at the Tartan Mine, where high-grade gold samples have been identified approximately 1.4 kilometres (km) from the mine, with the goal of discovering a third zone close to the existing infrastructure, and an update on its engineering review, specifically around the process plant design and potential mine reopening.
Phase 1 Exploration at Tartan Mine Significantly Expands High-Grade Mineralization Below Resource Limit Indicating Potential for Larger Discovery at Depth
August 23, 2023
Toronto, Ontario – August 23, 2023 – Canadian Gold Corp. (TSXV: CGC) (“Canadian Gold” or the “Company”) is pleased to announce initial results from its Phase 1 Exploration Program at the Tartan Mine, located near Flin Flon, Manitoba, including its first test at depth. Drilling has intersected one of the best holes in the mine’s history, 325 metres below the lower limit of the current resource estimate, increasing the vertical extent of the high-grade mineralization by 61% compared to the resource (Fig. 1). Hole TLMZ23-26 returned 12.0 gpt gold over 8.0 metres, inside the widest interval ever at the Tartan Mine, 4.2 gpt gold over 53.7 metres, and has outlined the potential for a larger discovery at depth. The drill highlights for the first three holes can be seen in Table 1.
Robert McEwen Appoints Jim Downey to Board of Directors Long Serving Member of Provincial Legislature
August 1, 2023
Toronto, Ontario – August 1, 2023 – Canadian Gold Corp. (TSXV: CGC) (“Canadian Gold” or the “Company”) announces that Robert McEwen, the Company’s largest shareholder (owning 37.6% of the outstanding common shares), has exercised his option and appointed Jim Downey as his second board nominee. Mr. Downey’s appointment will help strengthen the Company’s connection with Manitoba as it advances the Tartan Mine, near Flin Flon.
Update to Shareholders on Tartan Mine Tax Incentives
July 25, 2023
Toronto, Ontario – July 25, 2023 – Canadian Gold Corp. (TSXV: CGC) (“Canadian Gold” or the “Company”) is pleased to announce that Manitoba Finance has confirmed that the Company’s Tartan Mine, located near Flin Flon, would be considered a “Major Expansion” and eligible for a tax holiday should the mine re-enter production. Under the Mining Tax Act, companies need to meet certain requirements to receive the tax holiday. Based on the Company’s review and meetings with Manitoba Finance, the Tartan Mine should meet all requirements.
Tartan Mine: Looking To Improve Financial Returns & Sustainability
June 5, 2023
Toronto, Ontario – June 5, 2023 – Canadian Gold Corp. (TSXV: CGC) (“Canadian Gold” or the “Company”) is pleased to outline several initiatives the Company is undertaking at the Tartan Mine (Flin Flon, Manitoba) to improve potential future returns, while focused on sustainability. In addition to the items outlined in this news release, the most important driver for the Company will be the discovery of additional high-grade gold resources.
Phase 1 Exploration Program to Begin at Tartan Mine Main Objective: Extend High-Grade Gold at Depth Property Wide Exploration Potential Outlined
May 12, 2023
Toronto, Ontario – May 12, 2023 – Canadian Gold Corp. (TSXV: CGC) (“Canadian Gold” or the “Company”) is pleased to announce that its Phase 1 exploration program at the 100%-owned Tartan Mine near Flin Flon, Manitoba will begin on June 1, 2023. The Company is using this opportunity to highlight for shareholders the discovery potential on the property, specifically at the mine, and at its recently acquired projects adjacent to Agnico Eagle’s Hammond Reef Gold Deposit (Ontario) and Barrick’s Hemlo Gold Mine (Ontario). The Company plans to update shareholders in the coming weeks on its various initiatives designed to improve the economics of the Tartan Mine and its future advancement.
Satori Resources Name Change to Canadian Gold Corp. New Ticker Symbol “CGC” ON TSX Venture Exchange
May 4, 2023
Toronto, Ontario – May 4, 2023 – Canadian Gold Corp. (the “Company”) (BUD – TSX-V) (formerly Satori Resources Inc.) is pleased to announce that its corporate name change has been completed and trading of the Company’s common shares on the TSX-V will commence under the ticker symbol “CGC”, as of tomorrow, Friday, May 5, 2023.
Ian Ball Appointed Interim President & CEO Satori Resources
April 27, 2023
Toronto, Ontario – April 27, 2023 – Satori Resources Inc. (“Satori” or the “Company”) (BUD – TSX-V) is pleased to announce Ian Ball has been appointed interim President and CEO effective today. Ian will replace Jennifer Boyle, who is continuing with the Company as Executive Vice-President and Director.
Satori Closes Acquisition of Rob McEwen’s Apollo Exploration Resulting in Rob McEwen Holding 37.6% of the Company
April 25, 2023
Toronto, Ontario – April 25, 2023 – Satori Resources Inc. (“Satori” or the “Company”) (BUD – TSX-V) is pleased to announce that it has completed the acquisition of Rob McEwen’s 100% owned private exploration company, Apollo Exploration Inc. (“Apollo”). Rob McEwen is now the Company’s largest shareholder representing 37.6% of the Company. Satori has approximately $2,000,000 in cash, no debt, and in addition to the Tartan Lake Mine, now owns exploration properties in Ontario and Quebec surrounding some of Canada’s largest gold mines and development projects (see news releases dated February 4, 2023 and March 31, 2023).
Satori Shareholders Approve Acquisition of Rob McEwen’s Apollo Exploration, Resulting in Rob McEwen holding a 37.6% of the Company – New Company proposed to be Named Canadian Gold Corp.
March 31, 2023
Toronto, Ontario – March 31, 2023 – Satori Resources Inc. (“Satori” or the “Company”) (BUD – TSX-V) is pleased to announce that shareholders have approved the acquisition of Rob McEwen’s 100% owned private exploration company, Apollo Exploration Inc. (“Apollo”). Apollo has been acquiring key exploration projects around Canada’s largest gold mines and development projects, including the Canadian Malartic Mine (Agnico Eagle), the Hemlo Mine (Barrick Gold) and the Hammond Reef Project (Agnico Eagle). At closing, the combined company will have approximately CDN$2.2 million and no debt.
Rob McEwen to Acquire 37.6% of Satori Resources
February 6, 2023
Toronto, Ontario – February 6, 2023 – Satori Resources Inc. (TSXV:BUD) (“Satori” or the “Company”) is pleased to announce that the founder and former Goldcorp Inc. Chairman and CEO, Rob McEwen, will become Satori’s largest shareholder owning 37.6% of the Company with the objective of expanding the high-grade gold zones at the past producing Tartan Lake Gold Mine in Flin Flon, Manitoba. Satori is proposing to acquire Rob McEwen’s 100% owned private exploration company, Apollo Exploration Inc. (“Apollo”), that has been acquiring key exploration projects around Canada’s largest gold mines and development projects, including Canadian Malartic Mine (Agnico Eagle), the Hemlo Mine (Barrick Gold) and the Hammond Reef Project (Agnico Eagle) (Fig. 1, 2 & 3). Upon closing, Apollo will also have approx. CDN$1.5 million in cash and no debt.
$GOLD PRICES HIT ALL TIME HIGH IN AUSTRALIA, JAPAN, CHINA, TAIWAN | CNBC TV18
$GOLD HUGE! This Is the BIGGEST $Gold News in 50 Years, It's Time to Go All-In - Andy Schectman
Rhyming - Busts and Bubbles
with MMGYS movie scenes
"It was around July 2020, when we were all locked down and not knowing what was going on with our lives, our personal economies, our health, and our families, when I realized that the Federal Reserve had doubled the size – or even more so — of its book of assets. It had created about $5 trillion worth of money in a very short period of time.
During that time, the markets went from being very afraid and down to being very, very high. A lot of people said, well, we’re all at home using Zoom, so therefore the market just rebounded by so much. But that was just a small part of it. The bigger part was that money became available at such an immense level and therefore the distortion between where money goes in the financial markets and where it doesn’t go in the real economy became permanent. At that moment I saw that this can happen in any amount, at any time. There’s no restriction, no transparency, no responsibility."
Nomi Prins, You’re Living in a World Wrought by the Fed, 17 November 2022
"Unless one has placed oneself on the side of the oppressed, to feel with them, one cannot understand. As soon as men know that they can kill without fear of punishment or blame, they kill; or at least they encourage killers, with approving smiles. Evil when we are in its power is not felt as evil, but as a necessity, or even a duty."
"Once central banks unleashed monetary policy to accommodate mega-banks, subsidize Wall Street financiers, and bolster global markets, the very idea of free and open markets and laissez-faire investing died. No one wanted to call the Fed’s QE a Ponzi scheme. But it was.
Whether it was done to soothe a stock market crash, a ruptured subprime housing market bubble, or a pandemic, the Fed’s response to the financial crisis of 2008 and later crises has confirmed that it will always seek a way to grease the wheels of capitalism for its wealthiest participants and private banks. The results speak for themselves."
Nomi Prins, Permanent Distortion: How the Financial Markets Abandoned the Real Economy, October 11, 2022
As you may have likely heard the economic data this morning from the Non-Farm Payrolls report was a big miss, but apparently not great enough to swing the fear vector all the way around.
Hence, we have the 'goldilocks' effect.
Stocks roared higher, on expectations of no more Fed rate increases anytime soon.
And wistful yearnings for a rate cut.
The Dollar tanked.
Gold and silver rallied. Gold was held below the optic resistance at $2000.
VIX fell again, showing some abandonment of risk concerns, and a generally happy-go-lucky attitude, at least compared to the short term.
I rewatched the movie Margin Call last night. I think the last time was closer to its release around 2011. Has it really been that long?
My son said it was a good movie to watch. I said I had seen it, and had lived it. And the crash before that. And that. And that.
A stunning cast illuminates a realistic but somewhat spare depiction of unbridled greed going badly, for some. It was spare, perhaps, reflecting the characters who were really that banal.
The same sorts of people make the same egregious errors and fiduciary lapses, again and again, and are richly rewarded and rarely punished, pleading ignorance and benign intentions.
Bubbles and busts are acts of nature, right? Maybe the unnatural nature.
Who could have seen it coming— with their eyes closed and their greedy maws open?
Have a pleasant weekend.
Gold lacks the juice to break through $2,000 next week, but analysts don't recommend shorting it
with MMGYS soundtrack
Friday November 03, 2023 15:43
(Kitco News) - Gold’s inability to convincingly break above $2,000 an ounce is creating some cautious sentiment in the marketplace, with some analysts saying that prices might need to consolidate in the near term before the precious metal takes a run at its all-time highs.
While analysts are not looking to short gold in the environment, some have said its price action is disappointing as gold has not benefited from a sharp drop in yields and weakness in the U.S. dollar.
Currently, at $1,999, gold has ended a three-week winning streak as it looks to close the week roughly unchanged from last Friday. However, prices are down nearly 1% from its opening gap at the start of the week.
Commodity analysts have said that gold continues to be driven by global geopolitical factors as waning fear in the marketplace takes its toll on the precious metal’s safe-haven allure. Although Israel’s war with Hamas continues to rage, the conflict remains within Gaza, keeping the ongoing chaos in the Middle East in check.
"The geopolitical crisis that has fueled gold’s rally is becoming exhausted,” said Christopher Vecchio.
Vecchio said that while a geopolitical event can provide the gold market with tradeable momentum, it does nothing to attract long-term investors. He noted that a gold rally based on a specific geopolitical event needs to see constant escalation to maintain its safe-haven bid.
Vecchio said he exited his gold position last week and will remain on the sidelines in the near-term as he expects prices to consolidate.
"The bulk of gold’s big move is done. But I would not want to short gold as the fundamental backdrop of a weaker dollar and lower bond yields are positive for gold,” he said. "I think gold can continue to grind higher, but it will be a frustrating grind for potential traders.”
David Morrison, senior market analyst at Trade Nation, described gold as a market that is in search of a new catalyst.
Ole Hansen, head of commodity strategy at Saxo Bank, said that he is neutral on gold; he also noted that a consolidation around current levels would be healthy. The neutral outlook comes after gold saw a nearly 7% rally in October, its best monthly performance since March.
"Gold has paused after rallying almost 200 dollars last month after profit-taking emerged once again above $2,000 per ounce. Having rallied so hard in a short space of time, the market needs consolidating, but so far, the correction has been relatively shallow, with support appearing at $1,953, ahead of $1,933, the 200-day moving average and 38.2% retracement of the mentioned rally,” said Hansen.
On the downside, Hansen said that gold prices would have to fall back to $1,900 an ounce to put this new uptrend at risk.
With little economic data on the docket next week, analysts have said investors will continue to digest the Federal Reserve’s monetary policy decision.
The Fed's monetary policy is irrelevant and won't stop gold's push above $2,000 - abrdn's Robert Minter
Although the U.S. central bank left interest rates unchanged for the second consecutive time in this tightening cycle, Federal Reserve Chair Jerome Powell maintained his tightening bias.
"Is monetary policy restrictive enough to bring inflation down to 2%? That is what we are asking ourselves," said Powell in his press conference following the monetary policy decision.
"The Fed has left the door open to another rate hike. Even though we are confident that interest rates have already peaked, market participants are nonetheless likely to remain cautious in this respect. Assuming there is no further escalation in the Middle East, the upside potential for the gold price will probably be severely limited,” said Barbara Lambrecht, commodity analyst at Commerzbank.
Markets will get a chance to hear more from Powell as he participates in a panel discussion on "Monetary Challenges in a Global Economy" at a conference in Washington.
The only major economic report to be released next week will be the University of Michigan’s preliminary consumer sentiment survey.
Last month’s revision to the survey surprised markets as one-year consumer inflation expectations rose 4.2%. Powell, during his press conference, dismissed the reading, saying it was an outlier and most consumer surveys show inflation expectations remain "well anchored.”
Next week’s data
Monday: Reserve Bank of Australia monetary policy decision
Thursday: Weekly U.S. unemployment claims; Powell participates in a panel discussion
Friday: University of Michigan preliminary consumer sentiment