Christopher Aaron – Has Gold Already Priced In The Rate Cutting Cycle? Technical Outlook On Gold, Silver, and DOW to Gold Ratio
Christopher Aaron, Founder of iGold Advisor and Senior Editor at the Gold Eagle website, joins me to review his medium to longer-term technical outlook on gold, silver, the precious metals stocks, and the Dow:Gold ratio.
Christopher has been constructive on gold for some time, based on the progress on the charts, but has some concerns over the next few months. He is concerned that there could be potential selling when the actual news of the actual rate cuts is announced, as a sell the news event. A big portion of the move higher has happened anticipating these coming rate cuts for a long time with many markets from US equities, to the US dollar, interest rates, and also gold. He sees a growing potential for a deflationary correction in the US equity markets that could take most sectors down, including silver and the PM stocks.
We also review what he considers the single most important big picture ratio chart between the Dow and gold. This Dow:Gold ratio has continued to flatten out the last few months, as both markets went up in tandem; despite volatile macroeconomic and geopolitical forces. Whichever way the compression triangle in this ratio breaks, Christopher expects it to be a longer-term trend for the next decade.
Click here to visit the iGold Advisor website to keep up with Christopher’s market commentary.
