At the end of every month we naturally look back to the month that was, especially in the field of precious metals. Right now, we are at the beginning oh a new month and a new quarter and it is imperative to get a read on a potential forecast on gold this coming quarter.
There has been significant moves in the precious metals in the middle of March, particularly in silver, setting themselves to end the month on a high note.
Golds performance is linked to the performance of the US dollar. A serious investor should always keep a close eye on the US dollar index and all analysts agree, the US dollar is showing signs of tiredness and this is good news for gold.
At the same time Gold is struggling to come back to its recent highs in February, which means that there maybe some resistance in those prices as well.
The performance in gold, appears to show cautious optimism at best for the near term future, with the possibility of more falling in the month of April.
Although, there was an interest rate hike and there is more to come, interest rates are at a historic low, which means that they may not be as bearish as many analysts predict.
On the other side, Jim Rogers, a world renowned investor, Martin Armstrong, a well known financial analyst, and Tony Robbins, self help guru, each from from somewhat different backgrounds and are respected experts in their respected fields.
They all believe a financial storm is on the way and at the same time, all are united in believing that gold will act as wealth preservation tool and will likely rise in value when other assets fall.
In particular, Jim Rogers, argues that “the Fed is just about to ruin us all.” Central Bank low policy has driven interest rates to all time record lows and as a result, public and private debt has sky rocketed. Rogers is pessimistic about the outlook for America, as the US will continue on the path to bankruptcy.
Martin Armstrong warned on his Armstrong economics blog this week, that governments are in increasing trouble finding hard to deal with the economy and people will start to lose confidence. That may be bad news for the economy however, it is good news for gold, as people will turn to tangible assets.
Tony Robbins, has long advocated owing gold as a diversified portfolio and he believes that we are now in an artificial situation with Feds around the world printing money like there is no tomorrow.
In my opinion, the signals are mixed for the short term and for the long term ,they are indicating strong buying. Right now, I believe the gold sector is down and as a result a price correction is in progress. However, towards the second part of the year all the ingredients are going to be there for gold to start rising to new heights.
I do not offer predictions or forecasts for the markets. What you see here is a simple trading model which provides me the signals and set ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect my current positions in the markets. Trade at your own discretion.