The following chart is more for informative purposes than for trading but I did want to note that using the Federal Government's CPI data, (which is of course deliberately designed to underestimate the true rate of inflation), gold has effectively reached its all time high in terms of a monthly closing price in inflation adjusted terms. Whether or not this induces some profit taking among longs, particularly as global equity markets are now at this hour experiencing a rather sharp upside recovery after yesterday's pounding is as yet unclear but if we see a strong short squeeze in equities, watch for some profit taking to occur in gold. Already the metal is some $30 off its best levels of the evening.
We might also see a recovery in the gold mining shares if this rally continues into the New York trading session as those were moving higher yesterday before they succumbed to the general wave of equity selling.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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