macro factors lining up, page-5

i might add - there's possibly a nasty short term curveball for gold/silver in this.

when liquidity goes net negative it means there isnt enough money buying US bonds - so those bond rates rise.(this is why recessions are preceded by whats referred to as a bear steepener on the yield curve)

when rates rise on the long end, gold/silver typically sell off - trading money shifts from risk off assets to risk on - money goes from gold and bonds into banks especially - because banks make money from the difference between short bond rates they lend at and long term rates they borrow at. higher the yield curve steepens, the more money it implies a bank will make on each home loan

thats been happening for past week and a half

if its true shift in economic fundamentals (ie a trend shift) thats a doom loop for gold/silver. thats what you've started to see with gold/silver rolling over

but if its not - which is what Im saying - the majority of money misdiagnoses it as US/global growth picking up - gets long banks etc - only to get hammered when reality asserts itself

thats why im saying the setup is so positive for gold/silver past the end of this month if not before - recipe for a fall then major reversal higher

this is why pros generally hate all this FOMC intervention - no one can tell whether bond rate moves are real or not because FOMC is doing most of the buying