Mama Said There’ll Be Days Like This – There’ll Be Days Like This Mama Said

Just as in the song written by Luther Dixson, and sung by the Shirelles in 1961, “Mama said there’ll be days like this.” US equites are trading under tremendous pressure, with the Dow Jones Industrial Average down over 200 points. The net result is that US stocks are having their worst day since the election last November. Add to that the US dollar weakness and we have the necessary components for a major financial storm which could take gold prices higher, much higher.

Ever since the Fed Met for on the 14^th of this month, gold has traded to and closed higher, day in, and day out. Beginning with last Wednesdays conclusion of the FOMC meeting, where the Fed announced a Rate Hike of 25 basis points, and more importantly postured a continuation of the accommodative monetary policy prevalent since the 2008 economic crisis, we have witnessed a substantial run up in gold and silver pricing. 

Concern as to whether or not the new administration will be able to complete the process to replace the “Affordable Care Act” with a national health care program that is better than what is in place, raises concerns as to whether or not they can accomplish or implement other large policy changes. More so, the optimism of lower taxes, regulatory reform and other major campaign promises could quickly erode should the health care reform result as a stalemate. If this optimism fades, we could see US Equities which have benefited and traded to all-time record highs drop like the preverbal rock.

All of these factors have fueled this most recent run up in gold prices. Today gold is trading up about $10.00 to trade at $1245.

Maintain your current long gold position, maintain your current stop, and remember “mama said there’ll be days like this”

Wishing you as always, Good trading,