Merry Christmas!!!
Anutter year. Time for the Bear's crystal ball 2017 predictions...
Gold prices will remain down. A potential low of 1050 Q1-Q2. The problem for the gold bugs is and will continue to be, the USD strength. Although it has run like hell, it still has running room. Pushed along by a US GDP blip upward due to infrastructure, and defense spending. The spending making the US economy appear stronger, with inflation starting to grow after Q2. The Fed will hike rates in response to inflation starting due to the economy heating up. Also helping to prop up the USD.
At some point late in 2017, the infrastructure spending effect will ebb back down. The Fed won't be able to hike anymore, without throwing the economy into a recession. The market will suddenly notice a mega annual budget deficit. The USD gives way, and Gold starts to recover. Track the EUR/USD Forex trade. Overall the gold bugs will have to wait till 2018 for butter times.
Meanwhile I'll be swimming in the oil patch. Where PoO has temporarily detached itself from the USD. If lucky the oil patch will be the focus for a forthcoming commodities bubble. Safe in 2017. Potential to pop in 2018-2019. How fast the bubble comes up, and when it pops, depending on what the gators in Washington do to Dodd-Frank, and how soon. Late 2018 might make it prudent to mutate into a gold bug. Exact timing remains in a haze. In the meantime 2017 is party time in the oil patch! Bon appetite.
The Jewel of the Mind is Colored with the Hue of what it Imagines
