Reading the news today might be a downer, if you like happy, rosy pictures. Dominating the headlines is Donald Trump vs Kim Jong Un, who seem caught in a battle of one-upmanship. Korea’s leader saying his country is actively planning to nuke a US territory doesn’t give the market any warm & fuzzy comfort, that’s for sure.
Against that backdrop, this morning’s announcement that the US new unemployment claims number crept up seems insignificant. But let’s not overlook the fact. Gee whiz, 244,000 is almost a quarter million people losing their jobs — doesn’t that seem like a lot? In fact, most outlets are reporting the increase as “within expectations” during a recovery.
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Your friendly Gold Enthusiast, being a bit older perhaps, remembers when the “recovery number” was 185,000 and the upper range of “acceptable” if all was going well was 225,000. And, if there’s a recovery on, why are MORE people becoming unemployed — isn’t a recovery when there are more jobs around, not less? It just smacks of revisionism for anyone to push the idea that an increasing unemployment number is in any way good. A video is posted below expanding on the issue.
In any case, we’re just not seeing a whole lot of good news around these days, which is bolstering gold prices in the short term at least. Earnings season is going well enough but is also getting drowned out. So is there anything else we should look at?
The technical picture is important now because with gold sentiment very low, a big change in technicals could fuel interest in the yellow metal. If gold closes above 1300 in both London and New York in the next week it will be very significant. Here’s an article that explains the technical picture, which isn’t the be-all end-all for trading gold but it sure gives broad hints.
It sure seems like a great time to look for high-quality, depressed-price gold miners, and build yourself a small stash.
Signed, The Gold Enthusiast
DISCLAIMER: The author has no positions in any mentioned security. The author is long NUGT and JNUG and may add to or sell these positions in the next 48 hours.
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