That’s right.
I told you I would be re buying gold right around the time I saw The U.S. Dollar bounce completed.
Well………The U.S Dollar bounce will end tomorrow so one can’t get to picky about “the perfect entry” but….
I’m re buying NUGT here at 12.35. Right here…right now.
That’s it.
Another small order here in GPL ( Great Panther Silver ) at 1.27 as well IMG ( IAM Gold ) at 4.68
Not to say there isn’t considerable medium / long-term opportunity in the miners ( cuz there is ! ) – you may have missed the boat.
This chart will make your head spin as……the gains have been nuts. Even Gary Savage ( apparently ) got this one right.
Pullback_Exected_in_Gold_and_Silver
Short term – I would encourage you to just stay put, but as I’ve always said – Get this stuff on your radar! You need to identify levels, plot support and resistance on your charts, keep a pad of paper by the computer for f@*k sake!
Consider “post election” as a fantastic time to enter, as we are obviously over extended here. But get a list together! Make a plan! It won’t matter if the people of the Unite States vote for – the puppet or the clown.
Gold/Silver will both head for the moon as the entire planet completely freaks out.
Q: What did the midget say when I asked him for a dollar?
A: “Sorry bud……………………………………….I’m a little short”.
Feel free to pull the trigger anywhere in here today, as most currency pairs have done what was expected – providing for fantastic entries here “short USD” and short “risk in general”.
You’ll see a number of the other usual correlations play out ( as this is so straight forward and obvious ) with commodities moving higher as “the currency that they are priced in” slides lower, then lower…….and lower some more. And yes folks…..even gold and silver!
Again I marvel at the “hoards of financial bloglodytes” peddling this kind of information for money.
This is about as common knowledge as it gets.
Literally……”Introduction to economics 101″.
At this point in the game I have little concern for the price of gold as it’s trading almost exactly in tandem with the Japanese Yen ( JPY ) – both functioning as obvious “safe havens”.
These assets obviously gain momentum when “risk comes off” and considering that markets are now re testing the near term highs – what should one expect? ( insert lightbulb above head here )
The average investor, caught in the headlights of the main stream media and The Fed is certainly not “seeking safety” here as of this morning
Appreciate that nearly everything I track is stretched to extremes right now and rightfully so as…we are so very close to one of the largest turns this market will have seen in a very long time.
Why would gold be any different? A couple bucks here and a couple bucks there – not to worry.
These low volume days ( some of the lowest volume days of the year ) are legendary for getting people excited / worried as prices in “all assets” swing to extremes, washing out weak hands, luring in new buyers etc…
It’s always this way before a major turn in markets as the boys at your local brokerage / bank take the opportunity to push prices “as far in their favor as possible” before dumping.
September has everyone back in their cubicles. Likely back in their cubicles selling stocks and buying gold.
Gold is good – just not particularly “speedy” here at the moment.
It’s been a tough grind here as of late, with such low volume trading leaving so many asset correlations stuck in the mud. Traders looking for the usual “signals” in one asset class with hopes of “putting it all together” have been pushed around and pulled back and forth – left struggling to “find an answer” within the continued “day-to-day chop”.
A tough market to navigate with Central Bankers hiding behind every corner, and with such low volume it would appear that on many days…..the market just seems to be sitting there – doing nothing.
Oil looks to be heading lower here and USD appears tired now sitting at its near term “double top” ( as seen via $dxy ).
Gold’s pullback appears to be resolving itself – sputtering out at a pretty solid area of support around 1292.00, while U.S Equities ( as well EU equities and Japan ) look weak, tired and exhausted.
Does anyone else expect that next weeks “U.S GDP report” will disappoint? And that perhaps markets are “finally considering” things aren’t nearly as rosy as the U.S Media continues to suggest?
It would have to have been “some kind of amazing quarter” ( the past 90 days only ) for the report to make up for the incredible ” -2.9 % loss in growth” reported in the first quarter now wouldn’t it?
Stars would clearly align with USD moving lower, gold moving higher and “global equities” finally taking a break after the SP 500 has made it nearly 800 days straight without a meaningful correction.
Food for thought moving into next week. Perhaps you’ll want to take a peak at your computer / trade account a little more regularly.
Have a good weekend everyone. Enjoy the sun!
The updates trade table offers little in the way of “new trades” here as of this morning, as last Thursday’s “drop” and in turn Friday’s “pop” has left the higher time frames unchanged, and more or less “yellowed the waters” shorter term.
Weekly_Forex_Overview_Sunday_July_20_2014
What may be of particular interest to you this week will be USD, and “yes once again” the debate as to which way she’ll go ( with conviction and follow through ) should we see this distribution environment “flip” to something with a little more trend / conviction either way.
We’ve got JPY and its related pairs under the thumb, with eyes on Nikkei if considering to “beef up / add ” to any positions under our current framework. Ideally we’ll want to see JPY “breakout” from it’s ascending triangle moving higher…as “appetite for risk” moves inversely lower.
NZD in particular remains weak here this morning, but Thursday brings with it “another possible rate hike” out of New Zealand. It’s my thinking perhaps they “hold off” on an additional hike here and perhaps markets have already suspected as much but….that’s just speculation.
Still no aggressive trades in EUR, GBP vs USD as I want to give it another day or so to see if USD turns lower here as I expect it to.
A weak open here as Japan was weak overnight as well EU stocks so…..it remains to be seen of “the machine’s that be” will again step in at the U.S open and work their “usual magic” to keep this thing flying a little longer.
Comments from both The BIS ( Bank of International Settlements) as well the IMF “AND” even The Fed suggesting that it’s getting a little out of hand here – with public perception and the underlying fundamentals now clearly out of touch with reality.
Gold miners entries as of a few days ago remain strong, and the final “short SP 500” added at 1956.00 ( via Sept 191 puts ) appears to be holding its own.
Want to see what other irons we’ve got in the fire? Come join us in the members area for weekly reports, daily strategies, real-time chat and trading of “anything and everything under the sun” at: www.forexkong.net
Just fantastic.
The recent surge in gold now wiping out the “bottom pickers” and providing excellent long term opportunity across the board. This is the dip to be bought.
The price of Gold is now the exact same as it was back on May 14th! We’ve timed it perfectly, and haven’t missed a thing.
I’m still waiting for lower in both Gold, Silver as well the related mining stocks but as of today one can “offically” get it on their screens, and start creating those short lists.
EXK has always been a favorite of mine, but “it’s all gonna go” in the same upward direction once this pullback runs its course.
A blast from the past: Gold Going Down
You’d have to imagine that “letting gold out the basement” has some pretty braod sweeping implications…one being…..now that The Fed has losened the grip one can imagine that USD will also be allowed to move higher – as the “massive dilusion” will once again be masked with both Gold and USD moving higher medium term.
Fantastic!
The gold pullback isn’t happening in isolation — it’s part of a massive currency realignment that’s been brewing for months. While retail traders panic over temporary price swings, institutional money is positioning for what comes next. The Fed’s loosened grip on gold signals something far bigger than a simple commodity correction.
Here’s the beauty of this setup: the dollar is about to surge, but not for the reasons most traders think. As gold finds its footing and begins the next leg higher, USD will simultaneously strengthen through pure monetary engineering. This isn’t contradiction — it’s coordination. Central banks are orchestrating a scenario where both assets can rise, masking the underlying debasement that’s been accelerating since 2020.
The technical picture supports this narrative perfectly. DXY is coiling for a breakout just as precious metals complete their corrective phase. Smart money knows that USD weakness was the appetizer — dollar strength is the main course that allows for controlled inflation management while maintaining global reserve currency status.
EXK and the broader mining complex are setting up for the trade of the decade. While crypto gets all the headlines and tech stocks grab retail attention, precious metals miners are quietly building the foundation for explosive moves higher. The sector has been systematically destroyed over the past two years, creating the exact conditions necessary for maximum upside leverage.
When gold moves from $2650 back toward $2800, these mining stocks don’t move 6% — they move 60%. The mathematics of operational leverage combined with depressed valuations creates a perfect storm for wealth creation. The institutions accumulating these positions aren’t doing so for modest gains.
May 14th wasn’t just a date on the calendar — it was the high-water mark before this engineered correction. Every professional trader worth their salt has been waiting for this exact retest. The fact that we’ve returned to those precise levels while maintaining higher lows in the broader trend structure confirms the manipulation is complete.
Market makers needed to flush out the momentum chasers and weak hands before the real move begins. Mission accomplished. The rally setup is now pristine, with maximum pain already extracted from both sides of the trade.
This isn’t just about precious metals or currency manipulation — it’s about the controlled demolition of the old monetary system and the careful construction of the new one. Gold rising alongside dollar strength provides the perfect cover for massive fiscal expansion while maintaining the illusion of monetary stability.
Think bigger than individual trades. Central banks globally have been accumulating gold at record pace while simultaneously supporting dollar strength through coordinated intervention. They’re not hedging against each other — they’re working together to manage the transition to whatever comes next.
The implications stretch far beyond traditional forex markets. Commodity currencies will get crushed as dollar strength accelerates. Emerging market debt will face renewed pressure. European assets will underperform as the euro weakens relative to both gold and dollars.
But here’s the key: this entire setup has a shelf life. The window for positioning is narrow, measured in weeks not months. Once the moves begin, the opportunities disappear as quickly as they emerged. Professional money is already positioned. Retail traders are still debating whether the correction is over.
The answer is simple: it is. The dip has been bought by those who matter. The rest is just noise.
With the expected move out of USD coming together over night, we’ve seen more than enough follow through here to confirm what was suggested yesterday.
Stocks won’t hang on here, and I expect the power of the U.S Dollar “repatriation trade” to flatten gold here as well.
For those of you “investor types” I imagine you’ve come this far so a couple more months ( and perhaps further drawdown ) as gold slides into “its final leg lower” likely won’t kill you.
However for those looking at gold,silver and the related mining stocks as a trade….unfortunately – I see lower prices – before higher.
This is no “small blip” as far as USD is concerned, likely marking a significant turn “not only in the currency” but “in all” that it affects.
So far only the European currencies have taken the initial hit, but it won’t be too long now til we see the Canadian Dollar, as well Australian and New Zealand follow suit, and I’m not talking about a trade here……I’m talking about a major shift over the medium and even long-term investment horizons.
Top call still very much so “intact” here as of today – with the “Members of Kong” doing very nicely in our first month working together. Feel free to poke around the members site, and hey….you can even join us if you’d like. I’d take an additional 20 if you want to contact me over the weekend at : [email protected]
Have a great weekend everyone! It’s sun sun sunshine here!
What we’re witnessing isn’t just another routine dollar rally. This is the beginning of a fundamental shift in global capital flows that will reshape every major asset class for the next 12-18 months. The repatriation trade represents American corporations and institutions pulling their overseas capital back home, creating a vacuum effect that’s already crushing European currencies and will soon demolish the commodity-linked pairs.
The mechanics are simple but devastating. When multinationals repatriate foreign earnings, they’re selling euros, pounds, yen, and everything else to buy dollars. This isn’t speculative money looking for quick profits – this is structural capital movement that creates sustained pressure. The European currencies took the first hit because that’s where the largest pools of repatriable capital sit, but the commodity currencies are next in line for execution.
Gold bugs keep waiting for their moment, expecting the yellow metal to break free from dollar correlation and resume its bull run. They’re going to wait a long time. When the dollar strengthens on repatriation flows, it creates a double-hit on gold: first, the stronger dollar makes gold more expensive for international buyers, and second, the flow of capital back into dollar-denominated assets reduces the hedge demand for precious metals.
The final leg lower in gold isn’t just about technical patterns or seasonal weakness. It’s about the fundamental reality that when American capital comes home, it doesn’t buy gold – it buys Treasury bonds, domestic equities, and dollar-denominated real estate. This isn’t a temporary dip to buy; it’s a structural headwind that will persist until the repatriation cycle exhausts itself.
The Canadian dollar, Australian dollar, and New Zealand dollar are living on borrowed time. These currencies have been propped up by lingering hopes of Chinese stimulus and base metal strength, but that support is about to evaporate. As USD strength accelerates, commodity currencies face a perfect storm: falling commodity prices, reduced demand for risk assets, and capital flows moving away from resource-based economies.
CAD/USD breaking below key support levels isn’t just a technical event – it’s confirmation that the market is pricing in a sustained period of American economic outperformance relative to commodity-dependent neighbors. The Reserve Bank of Australia and Bank of Canada are already behind the curve on this shift, and their policy responses will only accelerate the decline.
This isn’t about catching a bounce or trading oversold conditions. The repatriation trade is a medium-term structural theme that requires strategic positioning, not tactical trades. Dollar strength will be accompanied by relative American equity outperformance, particularly in sectors that benefit from domestic capital allocation: technology, healthcare, and financial services.
International diversification – the holy grail of portfolio management for the past two decades – is about to become a performance drag. Money managers who’ve been preaching the virtues of emerging market exposure and European value plays are going to watch their benchmarks get destroyed by simple domestic equity exposure. The market rally we’re entering isn’t just about seasonal patterns; it’s about structural capital reallocation favoring American assets.
The currency moves we’ve seen so far are just the opening act. When this repatriation cycle reaches full momentum, we’ll see currency dislocations that make the current European weakness look mild. Emerging market currencies that have held up relatively well will face their reckoning as dollar strength accelerates and global risk appetite contracts. This is the type of structural shift that defines investment returns for years, not months.
Make no mistake…China “will” take the hit on those warehouses filled with “useless dollar bills”, or at least what’s left of them by the time they’ve used all they can to buy gold.
As the “macro plans” continue to take shape, the Chinese will soon look back on the “massive fires that raged through the warehouse district” as a passing story in the news – in the context of a “time of change”.
Consider trading hockey cards with a couple of the other kids on your street. All of the same set and series, until a month or two later a new set is introduced and you start trading those. More kids are buying and trading these “new cards” until finally – all you’re left with is a tiny box of the “old ones” eating up precious storage space under your bed.
Eventually you forget all about them, as the trade of these “new cards” now has you buying and trading with little concern for the “few dollars lost” on the inventory of “old cards” gathering mold underneath your bed.
I think that sums it up.
As China continues to grow its domestic economy, and promote trade in Yuan as opposed to the U.S Dollar, it’s really only a matter of time until both China as well “a large portion of the industrialized world” separates completely from any dependence on a U.S imposed system of trade in U.S Dollars.
We good here?
No terrorism here. No “bash America” / China to rule the world type thing no.
Just a simple outline of how a couple of countries on this planet have grown to be less “export dependent” and more “domestically driven” and far less interested in the purchase and hold of U.S “funny money”- with the unfortunate result leaving The United States and it’s continued devaluation of the U.S Dollar – out in the cold.
As the Fed continues to “mask” the true devaluation of the U.S Dollar by shorting the gold paper market and driving prices down, China gladly scoops up every ounce she can – demanding “actual delivery of the physical gold”.
China will continue to not only produce more gold, but as well purchase more gold “on the cheap” with every single “Fed raid in the paper market” to soon present the Yuan as a completely convertible currency on the global stage.
Complete with stockpiles of “real gold” sitting in vast warehouses behind it…..somewhere on the other side of the tracks.
So what does this mean for the future of the U.S Dollar and it’s use as the worlds reserve currency? What does this mean for the massive amounts of money previously gained by the U.S via the “use” of USD in trade world wide – soon to be lost?
The writing isn’t just on the wall—it’s carved in stone. China’s systematic accumulation of physical gold while dumping dollar reserves represents the most calculated currency transition in modern history. This isn’t speculation anymore. It’s mathematics.
Every Fed paper raid on gold prices hands China another opportunity to exchange worthless digital dollars for real, physical wealth. They’re not just buying gold—they’re buying the foundation of the next global monetary system. While Western central banks play games with derivatives and paper contracts, China demands delivery. Physical metal. Real wealth.
Reserve currency status dies slowly, then all at once. The U.S. has enjoyed decades of monetary privilege—printing dollars and watching the world accept them as payment for real goods. That free ride is ending. China’s domestic economy now provides the scale to operate independently of dollar-denominated trade.
When nations can trade directly in yuan backed by gold reserves instead of dollars backed by promises, the choice becomes obvious. The petrodollar system crumbles when the world’s largest oil importer offers gold-backed yuan as an alternative. Physics always wins over politics in the end.
The Federal Reserve knows this. Every suppression of gold prices through paper manipulation is desperation disguised as control. They’re fighting a losing battle against economic gravity. Dollar weakness isn’t temporary—it’s structural and permanent.
Gold doesn’t lie. It can’t be printed, manipulated, or created from thin air. China understands what the West forgot—real money has intrinsic value. Paper currencies are promises. Gold is performance.
The current gold-to-dollar ratio tells the whole story. Historically suppressed gold prices make every Chinese purchase a bargain basement acquisition of monetary supremacy. They’re not investing—they’re positioning for the inevitable repricing when paper games end and reality returns.
Central banks worldwide are following China’s lead, quietly accumulating gold reserves while publicly supporting the dollar system. They know what’s coming. Smart money doesn’t wait for CNN to announce the transition—it positions before the crowd realizes the game changed.
This macro shift creates massive opportunities for traders who see beyond the headlines. Currency pairs reflect these underlying power dynamics. Dollar strength against major currencies masks weakness against real assets.
The yuan’s gradual appreciation against the dollar isn’t market sentiment—it’s economic destiny. China’s trade surpluses, gold accumulation, and domestic growth create unstoppable momentum. China’s accumulation of physical assets while others hold paper promises will determine the next decade’s winners and losers.
Gold-backed currencies will outperform debt-backed currencies. It’s not ideology—it’s accounting. You can’t print your way to prosperity forever. Eventually, the bills come due.
The transition won’t be announced on financial television. It’ll happen quietly, through bilateral trade agreements, currency swaps, and resource deals denominated in yuan. Each agreement reduces global dollar demand while increasing yuan utility.
When the tipping point arrives—when more international trade occurs in yuan than dollars—the reversal will be swift and brutal. Decades of accumulated dollar reserves will flood back to America, creating the inflation that makes Weimar Germany look like a practice round.
China’s patient strategy wins through persistence, not drama. They don’t need to defeat the dollar system—they just need to build a better alternative and wait for economic gravity to do the rest. The warehouse fires consuming worthless paper won’t even make the evening news. By then, everyone will be too busy trading the new currency to remember what the old one was called.