The chart of the precious metal GOLD on a month time-scale has shaped a very precise CUP & HANDLE Pattern. That could be a supportive price/volume structure for GOLD PRICES. There are two factors that can see investors flocking into GOLD: factor 1) it's INFLATION and higher and sustained INFLATIONARY PRICES going forward, this should be a comprehensive macro-economic backdrop that structures higher INFLATION and PRODUCTION PRICES for the next decade.
factor 2) Distress in DEBT with a spill-over in SOVEREIGN DEBT. There are factors that can justify $ Trillion dollars of debt going into Distress and concern levels.
Countries in Asia and Africa and South America have already seen civil unrest and turmoil, with Sry Lanks already having declared default. Sovereign Debt distress in emerging market countries also couples with the weak Chinese economy and defaulting Housing market and Chinese borrowers.
On top of this, there are concerns on possible solvency and distress of Euro Area Sovereign Debt, while the Treasuries Yield curve has been inverted for a few months already also concerning for Trillions of dollars of debt worries.
factor 2) Distress in DEBT with a spill-over in SOVEREIGN DEBT. There are factors that can justify $ Trillion dollars of debt going into Distress and concern levels.
Countries in Asia and Africa and South America have already seen civil unrest and turmoil, with Sry Lanks already having declared default. Sovereign Debt distress in emerging market countries also couples with the weak Chinese economy and defaulting Housing market and Chinese borrowers.
On top of this, there are concerns on possible solvency and distress of Euro Area Sovereign Debt, while the Treasuries Yield curve has been inverted for a few months already also concerning for Trillions of dollars of debt worries.