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Morning JAVA: Gold, Nasdaq, S&P 500 Hit Fresh New Highs

Morning JAVA: Gold, Nasdaq, S&P 500 Hit Fresh New Highs


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Gold Blasts Above $2,200 For First Time

On March 1, gold began a rally starting with a fresh new weekly record close. On the following Monday, gold continued to rally, setting a new record with a new record high daily close. The following day and every day for the rest of the week, gold would hit new intraday and closing highs. On Friday, March 8 gold hit a new intraday high, record daily closing high and record weekly closing high, clocking in 3 records in a single day and closing at a record weekly high two Fridays in a row. In total, gold eventually broke 11 records in just 6 trading days.

This week gold consolidated a bit which was to be expected as profit seekers sold off at record highs. Still, gold held above $2,150 for the most part and early yesterday morning, gold shot above $2,220 for the first time, marking yet another fresh new intraday high. Within a few hours though, gold was pushed down about $40. At time of writing, gold sits at $2,178.

Kitco Gold Chart March 22 2024 New Intraday High $2,220

I'm guessing the soaring price of gold has something to do with the rising price of oil. I've stated in previous posts that there's a well known correlation between oil and gold going back 70+ years. If oil rises, usually, so does gold. Remember 2010 / 2011 when oil soared to almost $150 per barrel? At around the same time, gold had shot up to new record highs of about $1,950 per ounce.

Kitco Energies Oil Futures Chart

We can see in the chart above that West Texas Intermediate (WTI) hovered between $76 / $78 for most of the last month or so. In the last couple of weeks, oil has begun to climb (in sync with gold). Unfortunately though, this ultimately means higher prices at the pumps for the foreseeable future, especially as we head into the summer driving season. Are we to see a repeat of 2022???

 

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Nasdaq And S&P 500 Hit Fresh New Highs

Yesterday was also a big day for the stock markets with the Dow Jones Index leading the way with an increase of 0.63% on Thursday while the S&P rose by 0.32% and the Nasdaq rising by just 0.2% but it was enough to propel the Nasdaq to a new high.

Kitco S&P 500 Index Chart March 22 2024

The Nasdaq continues to hold at record highs...

Kitco Nasdaq Chart March 22 2024 New Record Highs

 

Central Bank Action

While most people are focusing on record highs from gold, stocks and of course, Bitcoin, I wonder if anyone has been paying attention to central bankers around the world. Their actions are likely a major cause of these new record highs we're seeing as of late. On Wednesday, the FED held rates steady but made it clear in their wording that at least three rate cuts were coming later this year with the first rate cut likely coming in June. The FED always lowers rates heading into a federal election so this comes as no surprise.

What is a big surprise though is the Swiss central bank and their 'surprise' quarter percent rate cut overnight Thursday morning. This suggests that other central banks will follow but will they also begin rate reductions before the FED does? So far, the ECB, Bank of England along with the Bank of Canada have continued holding rates steady.

The real shocker though comes from Japan's central bank, the last of the central banks to still be at negative zero interest. They went negative in 2016, following the ECB and Swiss National Bank's lead, as they went negative in 2014. On Wednesday, the Bank Of Japan finally raised interest rates for the first time in 17 years! Now, they're at zero to 0.1% interest.

In the last 24 hours, the USD has rallied about half a point higher and is presently at 104.305 from a low of 103.927 in early overnight trading. We can thank the FED for signalling coming rate cuts later this year.

Bitcoin's Honorable Mention

Bitcoin surpassed $73.8K on March 14 for a new record high. While it's consolidating at the moment, excitement is building as we near ever closer to the next Bitcoin halving, set to occur only a couple of weeks or so from now. Mining Bitcoin will become twice as expensive to mine. Based on that, we can expect higher prices for Bitcoin going forward.

Kitco Bitcoin Chart - March 22, 2024

Silver Getting Ready To Explode Higher?

In the last few years, China has been gobbling up silver for its solar panel industry and since they control 'London Gold Pool II', rumor has it they've been controlling silver prices at subdued prices. Well, that may be about to change because China must move aside as India has now begun its foray into the solar panel manufacturing business and the numbers are quite shocking.

Alasdair McLeod, in an interview with Eric King at KingWorldNews.com on March 16, states that just one Indian company, Reliance Industries has been scooping up huge amounts of silver. McLeod suggests it's this one company and a few smaller ones that are draining the Comex of physical silver. In just the first 2 and a half months of this year, 1,200 tons of physical silver have been pulled from the Comex.

McLeod is a regular guest on KingWorldNews. You can listen in on this great interview here.

Below is the three month chart for silver. Right on cue, as gold began its rally on March 1, so did silver's rally. I'm a big proponent of owning physical silver. Remember its dual purpose as a monetary metal as well as an industrial metal. McLeod suggests $40 silver in the near future. Besides, where gold goes, usually, silver follows.

Silver is sitting on a spring board. It's ready to go. It's the only commodity on earth to not break its 1980 high. This strongly suggests heavy manipulation to suppress prices (to make cheap solar panels, cell phones, etc.?) at the expense of the miners.

Kitco Silver 3 Month Chart - March 22 2014

It's just a matter of time now before silver really takes off, any day now actually. With warnings of more bank collapses on the way, relating to commercial real estate and higher for longer interest rates, there's no time to waste getting prepared for the financial crisis that's brewing. To add icing on the cake, the U.S. national debt is about to hit $34.6 Trillion! It's not stopping or slowing down. It's actually speeding up. So when I say there's no more time to waste, I really mean it!

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SweptOverNiagara
SweptOverNiagara

Name's Joe and I live in Ontario, Canada. I like writing on a wide variety of topics. I enjoy keeping track of markets, investing and commodities and the crypto sector. Also do some coding for web browsers.


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