Michael Oliver: We May See The Gold Market Go No Offer And Skyrocket

MSA continues to watch this sector with great interest. While the S&P 500 has taken out its December 2018 low and rallied back above it, banks have gone lame well below that prior major low (while some major European banks have taken out their 2009 financial crisis lows).

We suggest that the advance in gold has long had fundamental rationale based on the central bank- manufactured underpinnings of the stock market advance, especially since 2011. A skyscraper that was built not of concrete and steel, but plywood and plaster. Now undone, especially in various major sectors: banks, autos, energy, etc. And with massive renewed monetary response by CBs. Fuel for gold.

There is the potential that what just happened to oil (absence of bids) could happen in reverse to gold — an absence of offers! Such a technical event would not surprise us. And if it occurs it will probably be associated with an ambush-type news story. 

Perhaps one that comes from European or U.S. bank sectors. We shall see. This is a thought based on technical and fundamental factors.

- Source, Michael Oliver via King World News