A Stagflationary Firestorm Approaches
By: Stewart Thomson
GoldSeek.com
Tuesday, 2 August 2016
1. For the Western gold community, the main theme for 2016 continues to be, “let the good times roll!”
2. To understand why that is true, please click here now. Double-click to enlarge. GDX just raced to yet another new high for the year, and my next target prices are $33 and $37.
3. Technically, the situation is superb; there’s a momentum-style buy signal in play on my 14,7,7 Stochastics series, and the price chart is a textbook “staircase” pattern of higher highs and higher lows.
4. Please click here now. Double-click to enlarge this wonderful daily gold chart. This Friday’s jobs report could be the catalyst that pushes gold towards $1392, and on to my $1432 target. Here’s why:
5. The US government could face a sovereign bond crisis if Janet Yellen hikes rates in a material way, but wage pressures and entitlements spending are growing while corporate earnings growth is stagnant.
6. That’s a deadly recipe for a “stagflationary firestorm.”
The Rest…HERE
