Gold 'overbought'? Yes, insofar as 95% of what people think they own doesn't exist

Section:

But not because of trading data when central banks are surreptitiously manipulating the market.

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Gold Has Been This Overbought Only Three Times in Two Decades

By Ye Xie
Bloomberg News
Monday, January 6, 2020

https://www.bloomberg.com/news/articles/2020-01-06/gold-has-been-this-ov...

Gold is almost guaranteed to record losses in the next two weeks, if history is any guide.

The 14-day Relative Strength Index for the yellow metal soared to 86 today, well above the level of 70 that typically suggests securities are overbought. Previously, there have been only three times since 2000 when the RSI rose above 85, and in each instance bullion fell over the next 10 trading days. The loss averaged 1% compared with a gain of 7% over the previous 10 session.

... Dispatch continues below ...



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Northstar Gold Closes Initial Public Offering
and Lists on Canadian Securities Exchange

Company Announcement
Wednesday, December 31, 2019

NEW LISKEARD, Ontario, Canada -- Northstar Gold Corp. (CSE: NSG) announces that it has completed its initial public offering of 9,985,498 common shares at the price of C$0.30 per common share for gross proceeds of C$2,995,649. The corporation will be listed as a natural resource company on the Canadian Securities Exchange (CSE) and the common shares are expected to commence trading on January 2, 2020 under the trading symbol NSG.

Haywood Securities Inc. and Canaccord Genuity Corp. acted as co-lead agents and joint bookrunners under the offering. For their services, the co-lead agents received a cash commission equal to 10% of the gross proceeds of the offering and 998,549 common shares reserved for issuance upon exercise of the common share purchase warrants granted to the co-lead agents upon completion of the offering. The agents' warrants are exercisable at a price of $0.30 per common share within two years.

The corporation intends to use the net proceeds from the offering to complete Phase I of the work program recommended in the technical report dated December 10, 2018, entitled "Independent Technical Report on the Miller Gold Project, Kirkland Lake, Ontario." ...

... For the remainder of the announcement:

https://www.northstargoldmining.com/pdf/2019-12-31-nsg-nr.pdf



To be sure, in all three occasions -- October 2010, February 2016, and June 2019 -- gold eventually resumed its rally. But the momentum had slowed. Gold performs best when interest rates fall and the dollar weakens. Without a further escalation of Middle East tensions, the bulk of the moves in rates and the dollar may be over for now. And the same is probably true for the bounce in gold, at least in the short term.

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