Gold's New Friend: The Swiss Franc Stewart Thomson

Gold's New Friend: The Swiss Franc!

1. While I predicted a huge rally in gold would usher in the new year of 2015 in a spectacular way, the top bank economists have failed again.
   
   
2. Most of them predicted, “No rally for gold!” Their dire predictions in 2014 all failed to materialize, and this year they are off to an even worse start.
   
   
3. The bank economists, quite frankly, look ridiculous. They clearly need to reset their thinking about the powerful demand coming from billions of Chinese and Indian citizens, or they risk turning themselves into clownish figurines.
   
   
4. The daily chart for gold looks spectacular. Please . Note all the buy-side support lines that I’ve highlighted on this chart.
   
   
5. For another look at that daily chart, please . Note the green trend line. The breakout above that line will attract a large number of technicians and momentum-oriented hedge funds.
   
   
6. The commercial traders are shorting gold into this strength, but I suspect they may end up booking heavy losses on this trade. They don’t lose often, but they appear to be in some serious trouble here.
   
   
7. Please. Chinese hedge funds have emerged as a new potential threat, to the Western bank dominance of the world’s metals markets.
   
   
8. It’s impossible to know if these giant Chinese funds are running long gold/short copper trades of size. If they are, the Western banks may decide to fold on their short gold positions, rather than risk even bigger losses.