Silver, Gold and Crypto - Daily Digest: August 28, 2017 - Impressive move by gold today. Will it last?

First of all, my heart goes out to folks in Texas suffering through this historical and unprecedented rainfall. I pray for the well being of all out there.

On a more mundane note, when I looked at the charts for gold and silver this morning, I thought I am looking at the wrong charts!

I do, however, want to caution that this might be temporary (see my critical alert from this morning). I say this because as per the latest Commitment of Traders (COTS) report, the net short position has increased from the previous period. But the window of closing the short position is closing fast as the peak buying season is just starting in another 7-10 days. So what we may see is a heavy slam that may continue for 3-4 days and then a sustained increase. Of course, all the analysis can change in a moment, if any of the geopolitical situation gets tense. I did note that for the first time in many days/weeks/months/years, the upswing for both gold and silver was more than 1%. So obviously, something went wrong in the HFT algos or someone allowed the price to rise. In either case, I am not complaining.

With regards to stocks, it is now confirmed that all the top 6 banks are selling their own banks stock. This data is available through insider trading. This clearly suggests that something is brewing in the financial sector. Coupled with a very buoyant crypto market in last 24-48 hours, we can assume that some event is going to happen pretty soon in a couple of months.

Speaking of cryptos - Litecoin jumped over $50 and is now hovering an all time high of $65. Bitcoin has consolidated at $4350 level and Ethereum is holding steady at $350. All three of these are poised for next leg up.Of course, not to mention none other than Mr. Bernanke himself is speaking in support of Cryptos in the Blockchain conference. Do you have any doubt that cryptos are here to stay? This comes after Mr. Greenspan suggests holding gold.

What is confusing today was the fact that despite such a massive storm in Texas, the oil prices remained subdued and were down almost 2.5%

The dollar continued its decline and now is at 92.27. As you would recollect from my earlier blogs, below 92 there isn't much support till 80 and then at 72 level. That would trigger the gold price rise like we have not seen before.

Hurricane Harvey and the likes remind us to prepare as the disaster can strike us at any time. Can you imagine the situation, where even though people may not have their homes flooded but haven't stocked up any food? It could be weeks before the supply chain is restored.

SO, as I always say, be prepared and be safe!