Gold’s settled into another sideways trading pattern that’s running on borrowed time. If it doesn’t get going to the upside soon, it’ll break to the downside.

At New Orleans 2020, some of the smartest analysts in the business showed us why this won’t matter at all.

October 26, 2020

Dear Fellow Investor,

The short-term trend for gold is as clear as mud.

Or, put another way, there’s no trend to be seen.

As you can see from the chart below, the yellow metal has settled into another sideways trend after its big correction in September.

A gold-bug optimist might be able to detect a slight uptrend from late September, but that vanishes if you consider the trading pattern over the last couple of weeks.

True, a “trend” like this can last longer than we expect, but it seems apparent that this one is running on borrowed time. We’re going to get a break one way or the other, and while I was betting that the last one would break upward, the evidence is pointing the other direction now.

That said, at least this time we have a clear point of embarkment: November 3rd.

The U.S. presidential election will obviously be consequential for any number of reasons, and one of these will be the resulting direction of the gold price.

In our recently concluded New Orleans 2020 virtual event, which gathered many of the world’s top experts on the economy as well as the financial and metals markets, opinions were divided as to the potential impact on gold and silver.

First off, everyone agreed that the macro forces at work — which will demand negative real rates along with continued high debt and currency creation for years to come — are tremendously bullish for the metals. And these forces will be in place regardless of whether Biden or Trump wins the presidency.

However, there was disagreement over the impact of a divided government, in which the party holding the White House doesn’t also control Congress.

Lyn Alden, a rising markets analyst who I feel will be a superstar in the industry, believes that a divided government outcome would be bearish for both gold and the broad equity markets, in that it would make sustained fiscal stimulus more difficult to achieve.

On the other hand, Jim Bianco, an insightful market technician who made his New Orleans Conference debut this year, felt that a divided outcome was more bullish. In his view, a deadlocked government is less free to do harm to the economy.

Personally, I see merit in both points of view. As a libertarian, I naturally agree with Jim’s view that a hog-tied government will do the least harm. But in the short term, the markets today are as dependent upon ever-easier money and continued fiscal stimulus as a heroin addict is dependent upon his next fix.

So I lean toward the view that a divided result is best for the country as a whole, but bearish for the markets over the near term.

But again, it doesn’t really matter when all’s said and done….

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Betting On The Sure Thing

On a day like today, with the U.S. stock market diving while gold edges into the green, it’s easy to get lost in the short-term action.

But, as noted, it’s the longer-term, macro picture for the metals (and mining) that deserves the most attention right now. Because it is perhaps the most bullish it’s ever been.

There are many reasons why the U.S., along with virtually every economy the world over, is now dependent upon the flow of easy money and the maintenance of record-low interest rates.

Simply put, anything less and the entire house of cards come crashing down.

As investors, it’s vitally important to not only understand what’s going on, but also appreciate the probable future outcomes…and to prepare for them.

To do any less would be to put your entire life’s work at risk — and to miss out on generational investment opportunities.

The case for this macro picture is virtually indisputable, as is the case for learning all you can about it and getting prepared.

The best way to do so is to invest in your education, to get the insights, forecasts, strategies and recommendations of the smartest and most successful experts in the industry.

This year’s New Orleans 2020 virtual event was a one-stop shop for the best of the best. The good news is that, because it was virtual, every word of every presentation was recorded in its entirety.

And because these presentations are only a few days old, they are as relevant and valuable as they ever were.

The other piece of good news is that, if you missed New Orleans 2020, you can still review these extraordinary presentations at your leisure.

Not only have you missed nothing, you still have everything to gain.

To gain immediate access to the entire New Orleans 2020 experience, simply CLICK HERE.

All the best,

Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference