Commodity Trade Mantra

Posts Tagged ‘Gold Futures Shorting’

Gold Stocks Too Far Too Fast? Near Term - Overbought, Long Term - Just Begun

Anyone could easily make the case that gold stocks are positioned for a collapse in light of their extremely-overbought technicals. Over the long run, gold stocks remain radically undervalued relative to prevailing gold prices today, so their mean reversions higher have a long ways to go. Severe overboughtness following major secular lows is actually a confirmation a new bull should run for years.

Gold Investment Demand Will Drive Gold Stocks Higher

Gold stocks still remain greatly undervalued relative to prevailing gold prices. Despite its doubling in less than 3 months, this red-hot sector still has another easy doubling left to come. Analysis here proves gold stocks are due to more than double again. Gold investment demand will continue growing as the Fed-levitated stock markets roll over, driving gold stocks higher.

Shorts Savage Gold Futures After a Hawkish Surprise by the Fed

American gold futures speculators just savaged gold again on their historically-wrong and irrational belief that Fed rate hikes will decimate gold. Last week’s surprisingly-hawkish FOMC statement unleashed furious gold futures selling, battering gold back below its new uptrend’s support line. Futures shorting soon reverses, as those positions must soon be covered.

Silver Prices Remain Deeply Undervalued - But Not For Long

The bottom line is silver prices are deeply undervalued today relative to prevailing gold prices. Even if the silver/gold ratio merely returned to normal-year average levels, and gold stopped rallying, the coming gains in silver prices will be big. That gold itself is mean reverting higher now, holds great potential for silver prices to literally multiply.

Radical Underinvestment in Gold Today is Super-Bullish

American investors are going to soon plow tens of billions of dollars back into gold in an attempt to regain some modicum of prudent portfolio diversification. While these capital flows will be small compared to the stock markets, they are massive relative to gold investment demand. All that buying is going to catapult gold prices far higher.

Gold Proving Amazingly Resilient Despite Howling Headwinds

Gold has had a rough time, facing selling pressure from record futures shorting. The resulting new secular lows have greatly exacerbated the already-extreme bearish psychology long plaguing gold. But considering the howling headwinds gold has suffered in recent years, it has actually proved amazingly resilient, indicating strong latent demand due to accelerate as sentiment shifts.

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