Two Astonishing Charts Show Gold & Silver Now Ready To Soar

With gold and silver still trading above the key area where London metals trader Andrew Maguire told King World News there would be massive central bank buying, today James Turk spoke with KWN about the ongoing war in gold and silver, and he also sent KWN about two astonishing charts to go with his commentary below.

Turk:  “Today was a fairly quiet day for the precious metals, Eric, but we should not be lulled into complacency here.  Over the next few weeks, it seems likely that volatility will increase in a number of different markets.  Even though gold and silver will likely be impacted, we should be especially watching the US Dollar Index and T-bond yields.

 

The dollar and T-bond yields had big declines last week after the Fed’s no-tapering announcement, and are likely to be significantly impacted by two big news events rapidly approaching.

“The first one is the looming US government shutdown which seems likely to occur on October 1st or shortly thereafter because of the inability of Congress and the President to agree on any budget.

 

For 5 years the government has been operating under so-called “continuing resolutions,” which have enabled it to keep the lights on without any approved budget.  But the nation’s politicians now seem more divided than ever, and some lines in the sand are now appearing.  Because the rhetoric is heating up, the gloves are about to come off and turn this issue into a mean fist fight.  So we should be expecting a political fracas, and those always roil markets.

 

The other huge event towering over the markets, Eric, is the US government’s debt limit.  If it is not raised again, the US government will be unable to borrow any more money, which means huge spending cuts.  These two events are interrelated.  Operating under continuing resolutions is sort of like going from paycheck to paycheck, or for the US government, from one increase in the debt ceiling to the next one.

Read the full article and see the charts at KING WORLD NEWS.