The next catalyst for the gold market will come with the realisation that bond bull market is over and that institutional investors are losing money. Incredible concentration of the bonds holdings will ignite the volatility and when institutions will be heading to adjust the duration of their portfolios following the rising rates the buyers will be gone. No bids mean liquidity freeze and more losses in safe bonds. When mum and dad will start selling out this process will reignite itself. All we need for the gold market to return to the fireworks is 1% of those money reallocated out of bond portfolios.
Nobody loves Gold any more. We have headlines about gold going down to $800 or even $350. Even I myself find it almost embarrassing to write about gold any more. We must be making the real bottom now. Actually chart above is confirming it after my previous observation. We have retested the Low on daily and now on weekly we have the very nice potential reversal in the making.
Some Central Bankers in the world were popping champagne last week on the FED's Mission Accomplished and "the total meltdown of Gold". Some other Central Banks were just buying more of it. Who will be right - nobody knows for sure, but I like the sentiment. Hedge Funds are Net Short Gold for the first time, "China has announced much lower reserves than expected" and I personally tired even to think about the "barbaric relict" which is going to zero. Before I make my best trade shorting Gold into the dust I would like to throw some charts and links for Lithium induced meditation.
First chart above actually shows a wash out capitulation and Buy signal on Volume and Candles, all indicators are positive for reversal. Dan Popescu @PopescuCo has published few very interesting charts below and HedgehogTrader @HedgehogTrader has exceeded his monthly limits of tweets about the yellow metal on Friday. In case if rumours about Gold's Death are exaggerated, TNR Gold's "Vault" is still secured in Alaska and guarded by bears waiting for its time to come. Read more.
NOVAGOLD reports about the progress with permitting Donlin Gold and technical studies on Galore Creek. TNR Gold is developing Shotgun Gold project in Alaska and is looking for strategic partners to advance it.
"Nova Gold has published its new presentation for PDAC 2015. Now you can find more information about Alaska as mining jurisdiction and Donlin Gold type of Gold deposit. TNR Gold owns 100% of Shotgun Gold project in Alaska, which has very similar geology to Donlin Gold, according to Greg Johnson - one of the founders of Nova Gold. Read more."