Gold is the world’s ultimate asset, and another spectacular week is underway for investors. While May was mostly sideways (and lower for many gold stocks), it’s starting to look like the month of June could be a serious ‘barnburner’. Please click here now. Double-click to enlarge this daily bars gold chart. Gold tends to stage a decent rally in the days following the release of the US jobs report. That’s in play now, as I suggested it would be, but the rally is also on ‘Indian demand steroids’. Please click here now. It’s unknown how big black market demand is, but the official demand alone came in at over 100 tons for May! This weekend’s government announcement of a 3% GST rate on gold sales has sent Indian jewellery stocks skyrocketing. The new GST effectively cuts the total tax rate in the state of Kerala, which I have dubbed ‘world gold demand headquarters’. In my professional opinion, the bear cycle in Indian demand is over. Once the Diwali festival buying season arrives, I’m predicting that imports could reach a new single month record high of 200 tons. Please click here now. Double-click to enlarge this big picture gold chart. With the bear cycle in Indian demand over, gold is likely to begin its rise out of the huge $1923 – $1045 consolidation pattern. Gold is essentially poised to play ‘catch-up’ with the skyrocketing price of anti-fiat currency bitcoin, and begin a steady rise to my targeted $2800 price level.
This post was published at GoldSeek on 6 June 2017.
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