As we note in this and other Trends Journals, equity markets keep spiking with each new report of a new COVID vaccine.
The Dow rose four consecutive days last week, in part floating on the hope that a COVID virus vaccine from pharma giant Moderna is near. They will begin human trials later this month.
The same today. Markets across the globe went up on the news that the joint venture of Pfizer and BioNTech reported positive data on their coronavirus vaccine and that Oxford University and AstraZeneca also showed a positive immune response in an early trial.
Money Drugs
Of course, the primary primer of the equity markets is the countless trillions of monetary methadone central banks and governments are pumping into equity markets and economies to keep them from crashing.
Today, EU leaders announced a landmark €750bn COVID recovery deal of which €390bn of grants go to economically weakened member states, and which also allows the European Commission to undertake unprecedented massive borrowing on the capital markets.
In the States today, word from Washington is a new coronavirus relief bill will likely be passed next month.
TREND FORECAST: As we have precisely forecast, gold and silver prices are sharply rising as currencies lose value, particularly the U.S. dollar, which hit a four month low today.
For more on where the dollar is heading, Gregory Mannarino’s article “THE ENGINEERED EXTINCTION OF THE USD” will put us ahead of the news and on top of the this trend.
As the dollar went lower today, gold hit a nine-year peak, surging $21.70 to close at $1,841.50.
Silver closed at $21.44, its highest close since September 2016.
Therefore, we maintain our forecast that gold will spike above $2,000 per ounce. And when gold breaks strongly breaks above the $2,000 market, silver prices will rise much higher and at a greater percentage increase than gold.
TREND FORECAST: As we have been reporting, the U.S. Federal Reserve has pumped some $10 trillion of monetary methadone into the Wall Street money junkies so they can hit new highs.
And now, with more money pumping from Washington, the deficit is on trend to hit above $4 trillion this year.
Indeed, minus wild card events, such as war or a feared “second wave” of the coronavirus (real or hyped by politicians and Presstitutes), the U.S. and European economies will be artificially propped up by the unprecedented money pumping schemes.
However, the more money being artificially injected into the system, the lower the value of the dollar and the higher inflation will rise… which will prove bullish for precious metals.
TREND FORECAST: Especially now, when vaccines have become controversial, there will be a significant segment of people who will refuse to be vaccinated against the COVID virus.
Governments will limit the rights of those who refuse, with such measures as barring the non-vaccinated from air travel, schools, public events, and places unless they go through special tests and procedures before entering.
And, as we noted in this and other Trends Journal issues, the anti-vaccination movement will be part of a political platform that will help spur new third party movements in many nations.
TREND FORECAST: Today, on the news from the U.S. and E.U. of new massive money pumping deals to inflate sinking economies. Brent crude rose 70 cents to close at $43.98. West Texas Intermediate went up 95 cents to close at $41.76.
Oil industry analysts see benchmark Brent crude priced at $45 to $50 a barrel by the end of this year, which is not a high enough price to bring most U.S. shale producers back to profitability, especially now that OPEC countries are planning to increase production again.
That price rise also will not be enough to buoy the economies of many oil-producing nations, rich and poor, which were in economic trouble before the global economic shutdown took hold.
With tensions building in the Middle East and Venezuela and protests heating up in poor oil-rich nations, should they escalate into regional and/or civil wars, oil prices will spike.
Should they move above $80 a barrel, it will put strong downward pressure on the artificially propped up global economies.
Key countries to watch: Iran, Nigeria, Saudi Arabia, and Venezuela.
