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Silver’s fake-out is what is one of the more reliable technical signs on the precious metals market. Ironically, it’s what tricks most beginning investors that view breakouts in the white metal as something to be trusted.
That’s how the April slide started – with a fake-out in late March. We saw that once again yesterday and in today’s trading. This is a major “this is it” sign.
The monthly consolidation has probably just ended – the USDX and stocks provide key background for it, while silver and copper provide major short-term confirmations.
What was the trigger for all those moves?
The smoke-and-mirrors debt ceiling increase. I call it such, because it’s obvious that this ceiling will continue to be raised until some kind of major shift takes place (like replacing the USD and other currencies with government cryptos – so called CBDCs). This is obvious as nobody would want to take the blame for any kind of national insolvency or default.
It’s a political theatre with the aim of convincing people that they really try to keep the budgets balanced and not trying to inflate everything away or kick the can further. In this way politicians (in general, I’m not commenting on any specific party) behave like a bunch of boys that haven’t grown up yet and can’t take accountability for their actions.
So, yes, the debt ceiling was increased. While it was obvious to me, it wasn’t obvious for the markets, and they are reacting today. To be precise, the writing was on the wall, what happened with the debt ceiling is simply a direct trigger for this action.
Finally, I’d like to share something from the Golden Meadow®’s comments feed (thank you Simon).
The chart below features gold fund flows.
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