via 321Gold.com - Bob Hoye

My feeling on the $U.S. gold price is that it will not be easily picked out when a price fluctuation large enough to signal an extreme entry point will occur. The technicals are not pointing to a spike lower. The price is subject to derivatives trades in the futures, which have now carried the skew for two years.

The gold price has held steady through deterioration in fundamentals and an extraordinary negative sentiment. This is probably to do with negative interest rates in Europe and more capital controls for the banking sector. A depeg of the Yuan may be sooner rather than later should stock market collapses move over to the Hang Seng. The stock market rout in the US long anticipated is yet to come which will bolster the case for precious metals, since all eyes are jaundiced to a decline.

In $CAD terms, gold miners domiciled in Canada have had a devaluation of the currency land straight into their lap with a decline in the oil price and a second rate cut. A third rate cut need follow.

http://www.321gold.com/editorials/hoye/hoye071715.pdf

-F6