European central bank chief taper comments and Spain let down the euro. Technical picture is bearish for gold and silver. Reuters survey says that most of the analysts have reduced their gold and silver forecast for next year. I am not changing my bullish views on gold and silver for next year. This year gold and silver are mainly supported by geopolitical risk. Next year I expect the South China Sea and Korean peninsula to turn into the Persian Gulf. Even if Asian demand falters next year, European demand for gold will lend support to prices. The Middle East did not turn into a war zone overnight. Events in the South China sea will move towards bad and worse. Americans will try for a regime change in the Philippines. Duterte could be removed by the American as he bents more towards the Russian and Chinese. Most of the gold bears believe that a higher global interest rate cycle will prevent gold and silver prices from a rise. The pace of rise of global interest rates will be slow next year which should cause gold bears to retreat. Trump policies will be to placate Americans before US Senate elections in around a years’ time. America people are war mongers. Wars wins elections in the current global democratic system. America will fight more wars next year than this year. Fundamentally also, global debt is at a historical high. This global debt bubble can burst anytime.
This post was published at GoldSeek on 27 October 2017.
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