A few signals are pointing to the “smart money” getting back into gold and turning bearish on the U.S. dollar. Looking at the Commitment of Traders (COT), commercial hedgers are holding sizable bearish positions on the U.S. dollar.
At the same time, gold call options volume is surging higher.
Silver and the GDXJ are also showing positive signs that a breakout could be imminent!
I personally think that we could be one Tweet away from new highs in gold, as it wouldn’t take much to bring a big move in the yellow metal. Over the next year, it's highly likely that we will see trade wars erupt with the U.S. and several of its major trading partners, like Mexico, China, and the EU.
The counterstrike, as many readers can imagine, could be fatal for the U.S. dollar and global markets. It could result in everything from the selling of U.S. treasuries by trading partners to igniting price inflation as new import taxes get baked into the goods coming into the U.S.
Canceled treaties, trading agreements, and long-standing criminal activity by central banks could all be shattered by President Trump. His Twitter account could prove to be even more lethal to the stock market as he attacks individual companies and business leaders.
Trump is a real change agent, but the fact is that the entire monetary system is held together by the oligarchs—a global fraud machine. Now more than ever, I think we should hold both physical gold and a small core group of precious metal mining shares.
FutureMoneyTrends.com will be releasing our top gold and silver stock suggestions soon. Be ready for a very solidifying move in the precious metals this year!