On June 14 we wrote about gold saying: “Keep in mind that gold has yet to break out of its range for the last six years.
It needs to get beyond the 1,360-1,370 range in order to see huge gains.
If it doesn’t rally above that range, we’ll likely see another test of the lows before a huge bull market emerges.”
On Thursday (June 20th) gold jumped an impressive 44 dollars closing at $1,398.
And the gold bugs are going wild.
But can it continue its surge?
Let’s look at why it jumped.
This past week, Iran shot down an American drone. And trouble in the Middle-East is escalating.
Wars and rumors of wars consistently chase money into gold from currency fears.
The question I have is: “Why is Iran flexing their muscle?”
The answer is simple…They know they now have Russia behind them.
In their quest to take down Trump, the ultra-foolish Congress Critters have abused Russia.
It’s been so bad that now 70% of Democrat politicians (and far too many of their voters) believe that Russia is our mortal enemy.
Essentially, they’ve undone all the efforts for world peace since WWII.
Way to go goofballs.
But let’s go back to gold for the moment.
This recent burst of strength for gold is riding on the back of war. And it’s also the first time in six years that gold looks like it’s ready to break-out to the upside.
However, it’s critical that gold closes out the month of June on a high note.
A drop back to the $1,345-1,355 range could easily signal that this is a rally that can’t be sustained.
We shall see.
In the meantime, be sure to read: Why Owning Gold is Critical During Turbulent Times, in our July issue of “…In Plain English.”
Get it HERE.