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With the markets finishing the week by a shortened session on Thursday, plus our being in motion, we’re getting a head start on this week’s missive.
Now per that from last week’s piece, “Gold’s 1900+ Track Looks to Be in Santa’s Sack”, old Saint Nick doesn’t seem to have come through with that pack. Moreover, peering into the gloom above the ocean as we transit from the Night before Christmas into its Day, nary have we seen any reindeer-driven sleigh. Part-and-parcel of the year 2020, one has to say.
And yet, Gold per se has had a darn good year. In settling out the week earlier today at 1883, with but four trading days left in 2020, price year-to-date is +23.9%; further, Silver at 25.95 is +44.9%. So please no complaining; rather instead be rejoicing, ‘cept we’re not allowed to so do publically en masse, even if wearing a masque. Add, that up here in the air our computer at present says: “Unfortunately, there’s no internet connectivity when flying above the Arctic Circle”, and isolation seems everywhere.
Fortunately we gathered most of our salient end-of-week analytics prior to wheels up, so let’s get to it, beginning with Gold’s weekly bars from one year ago-to-date. Santa may not have brought us Gold 1900+, but for the past two weeks price has teased that level, reaching on Monday up to 1912, the highest level since 09 November.
And as was the case a week ago, Gold is well within range — now just 29 points — of eclipsing that same 1912 level which then flips the parabolic trend back to Long: Gold’s expected weekly trading range is 74 points. So clearly a little old-fashioned end-of-year buying can get it done, the rightmost bar nudging its red dot:
Now our good man Squire is not on the scene, however we can hear his cautioning comments for Gold such as “But mmb, they’ll sell Brexit agreement getting done” or “they’ll sell COVID relief getting done” (and then some?). Perhaps.
Yet why sell Gold at 1883 when by the opening Scoreboard’s debasement value ’tis pegged at 3664? Or why sell Gold when the “live” price/earnings ratio of the S&P 500 — with Tesla now a constituent — is 67.2x? ‘Tis not a typo; rather ’tis on beyond stooopid. (Note, too, the mighty Index’s yield is but 1.514% whilst that on the Bond is 1.662%; surely your money manager has brought this to your attention, right?)