Nearly no one realizes that it happened

FX_IDC:XAUUSD   Gold Spot / U.S. Dollar
At the moment of writing this update our full 250% net short positions in gold , silver and mining stocks are well justified from the risk and reward perspective.

when gold takes off or plunges in terms of the U.S. dollar, everybody knows about it. At the point when silver does likewise, most financial specialists are additionally focusing. In any case, when we move into the domain of different monetary standards and something essential occurs in one of the PM-related proportions, nearly no one realizes that it happened. Indeed, essential things are going on behind the curtains and we'll ensure that you're mindful of them and situated appropriately. How about we begin with the currency part.

The Gold-Yen Link

A little while prior, we talked about the gold-yen link and keeping in mind that gold has declined since that time, the estimation of the Japanese cash didn't decrease with respect to the U.S. dollar and we were asked over what period should one anticipate that this connection will work.

So, one can anticipate that the connection will kick in inside a little while. Now and then the yen drives the route (like in 2012 and 2013) and here and there gold leads the way, similar to it's been the situation over the most recent few weeks.

This doesn't make the connection any less helpful. In the event that gold leads the way, the connection fills in as an exceptionally helpful affirmation. For this situation, the breakdown in the Japanese yen will probably affirm that the enormous move in gold is in progress.

What's more, talking about breakdowns, we are seeing one at this moment and we saw a delayed confirmation of another breakdown. The Japanese yen moved underneath the rising red help line half a month back and it's been checking this breakdown since that time. This week, the yen at long last moved lower and declined likewise beneath the rising help line in view of the 2015 and 2016 lows. The suggestions are bearish for the yen and gold , and bullish for the USD Index.

Having said that, how about we investigate the little-known mining-stock-related proportion. Numerous individuals know about the gold stocks to gold proportion, however very few speculators investigate the proportion between gold stocks and the general securities exchange.

Gold Stocks versus Different Stocks

The two main considerations that effect gold stock costs are the cost of gold and the estimation of the general securities exchange (all things considered, they are stocks also). By taking a gander at the ratio between gold stocks and different stocks, we are taking out the other-stock factor, while leaving the gold factor. Subsequently, we're getting a particular intermediary for gold that is probably going to – and more often than not will – have its own particular value designs that can be utilized for affirmation or refutation of signs originating from the gold value examination.

We have quite recently observed a noteworthy breakdown in the value of the ratio. It moved underneath its 2015 lows subsequent to taking a short delay at this level. The respite really adds validity to the breakdown, since it is anything but an inwardly determined and likely inadvertent move. The inwardly determined move was halted by the past lows. The value stopped and it's beginning another slide that is yet to pick up force. The suggestions are extremely bearish .

This is the situation additionally on the grounds that – simply like what we see on the HUI Index chart – there is no solid (or even normal) bolster until the point when much lower levels.

The suggestions are, extremely bearish . For the proportion and mining stocks, as well as for the whole valuable metals division.

On one hand, it's sort of exhausting to report a similar factor again and again, however then again, it's incredible, on the grounds that it makes it more affirmed that huge decline are still ahead and our benefits are probably going to increment much further.

The USD Index moved a bit bring down yesterday and gold moved somewhat higher. Be that as it may, mining stocks declined at any rate, by and by indicating remarkable shortcoming. This shortcoming is an exceptionally solid bearish sign for the next days and weeks.


Summing up, it's very likely that the pause in the valuable metals is finished and the following enormous move down is as of now in progress. The move is probably going to be sharp and the benefits on the present short position are probably going to change from being immense to being colossal and afterward at last to being crazy.

As usual, we'll keep you – our supporters – educated.
many regards-Neeraj Pandey

Our existing positions

Sell Limit Price: 14.900

Take Profit: 12.80

Stop Loss: 14.413(modified)


Sell limit Price: 1185

Take Profit: 1080

Stop Loss: 1231
( It doesn’t, however, mean that we won’t adjust (limit, close or even reverse) the position before this price level is reached. If we get enough confirmations other than gold’s price level itself (for instance, mining stocks show strength and silver 0.07% 0.21% -0.07% -1.14% 0.07% -0.53% 0.13% -0.13% -0.06% -0.26% -0.19% -0.06% reaches a very important support level , while the USD reaches a key resistance), then we might do it, just like we’ve done previously (which ultimately caused the short position to be more profitable).

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