More ‘Inflation’

Gold Does Nothing

Another ‘maximum inflation‘ story, another non-confirmation in gold.

If that weren’t enough, look who’s out pounding the pavement (again) on inflation.

The press itself, possibly unbeknownst to them, is helping to destroy the (monetary) inflation narrative.

Or at least, revealing we’re actually in the middle of something that’s not quite understood by us in the proletariat.

If monetary inflation really was that rampant (an opinion), gold and other precious metals would be in a screaming bull market … manipulation or not.

That hyper bull market has not and is not happening.

However, what is happening, and what continues to happen, are scenes like this … and this

Let’s move on to the charts.

Newmont (NEM) will be analyzed over the weekend. For now, we’ll use GDX, leveraged inverse fund DUST.

GDX, Inverse DUST (4-Hour)

The first two trade points are clear. The ‘set-up’ and the ‘gut check’.

Whether or not we’re completing the first correction won’t be known until price action at least makes a new daily high, above today’s DUST: 20.45.

The zoom chart below, helps show DUST, is penetrating support … now in spring position.

Obviously, stating the first correction as ‘complete’ was premature.

However, if we are going to see a continued downtrend in GDX and uptrend in DUST, the chart above looks like today’s action is a good area for pivot/reversal.

With today’s screaming 40-year inflation news (first link, above) all gold could do (as of this post) in the futures market, was a meagre 0.43% blip higher.

Stay Tuned

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279