Gold has moved back to the 1:2 descending Gann angle. Price may stop here or move back to the 1:1 angle. I don’t expect it to make it above the 1:1 angle. If it does then something odd is happening as there is deflation everywhere in the short term.
Chart courtesy of Stockcharts.com
Tags: Gold2 Comments
2 responses so far ↓
deflationary ? excuse me ? govt is buying assets from the money they dont have. how is that deflationary ?
plus there is no single reason which is sufficient to move gold in either direction.
Actually, they are not buying or paying for anything. They are only taking over to remove the margin calls and failure actions. They get the stuff for free and work out the deals. They do pay some counter parties but also get plenty of assets. On the balance sheet they “paid” for stuff. But in reality they just took responsibility for managing it. The only entities hurt will be those share holder and officers who get nothing. The gov’t doesn’t need to make a profit so much of the “loses” are imaginary as they include loss of future profits.