iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
18,975 Blog Posts

Futures Sharply Higher — Gold Rejected Again

Important to note, I’m still without any water. We rented a hotel room last night just to shower warmly and were summarily rejected upon entering said shower — as the hotel water was initially cold. Upon receiving our most venomous complaints, the Hilton branded hotel fixed the issue and we all bathed warmly and with some fleeting dignity. I am here now, at home, eagerly awaiting a plumber to relieve me of my thirst and reinstate flowing water throughout the house.

Futures are sharply higher, +95, and gold is down. Not only is gold down, but so is oil.

It’s important to highlight what gold is doing now, for several reasons. The first and most important — we are tracing the top end of a 6 year resistance barrier.

The other is the demand coming out of foreign Central Banks for gold — record levels, dating back to 1967.

Governments added 651.5 tonnes (metric) of gold to their foreign exchange reserves in 2018, a 74 percent increase from the previous yea

This is a narrative I will be watching closely throughout 2019. In the meantime, stocks should break higher again this morning — but keep a close eye on oil. If oil starts downhill, the rally might wilt and wither away.

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