Pinnacle Activity Ticker
A Long Painful Wait
How long have we been waiting for a day like yesterday in the junior golds? In 2012, one had to really question whether we were crazy in our belief in gold, given the beating that we all took in our junior golds. Gold was up over $50 yesterday, and in my opinion this is the perfect storm for gold given the following 5 reasons:
--> The Fed meets in June, as their last meeting before taking the summer off. You can bet they will be feeling the pressure from Obama to say/do something to provide further support before the election.
--> There has been an uptick in short interest lately in gold, so watch for a bear trap and a royal squeeze of the shorts (as we saw part of this yesterday).
--> No where else to hide. Europe still stinks, US treasuries are at all time lows, the stock market stinks....All of this provides a funnel into gold and gold equities.
--> Gold equities are near record lows as compared to gold prices. Look for them to lead the way higher, and provide a circular spiral higher.
--> The USD has been strong in 2012, as this weakens that will provide further flow into hard assets.
We may just yet approach our 2011 high in gold, and make it 12 straight up years in this gold bull market.
Have a great weekend.