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REVEALED: Best Investment During Inflation
In the world of commodities trading, gold has always been perceived as a safe haven investment. It has proven time and again to be a reliable store of value during times of economic uncertainty. In a recent video by Ira Epstein, a well-known market analyst, he discusses why gold is still acting bullish despite the current market conditions.
Epstein begins the video by acknowledging the recent pullback in gold prices. However, he emphasizes that this is just a temporary correction in a larger bullish trend. He cites several factors that continue to support a positive outlook for gold.
One of the main drivers behind gold’s bullishness is the ongoing global economic uncertainty. Despite the vaccine rollout and the easing of COVID-19 restrictions in many countries, there are still concerns about the potential for new variants and their impact on the global economy. Epstein highlights that governments and central banks around the world are continuing their unprecedented monetary and fiscal stimulus measures, which ultimately creates inflationary pressures.
Inflation is typically seen as positive for gold, as the precious metal is often used as a hedge against inflation. When the value of fiat currencies decreases, investors turn to gold as a store of value. Epstein points out that inflation expectations are on the rise, which provides a strong fundamental support for gold’s bullishness.
Furthermore, Epstein discusses the technical indicators that suggest a continuation of the uptrend in gold. He mentions that the 200-day moving average, a widely watched technical indicator, remains above the price of gold, indicating a positive long-term trend. Additionally, he highlights the upward momentum in gold prices, as indicated by the higher highs and higher lows on the price chart.
Epstein also addresses the recent weakness in the U.S. dollar, another factor that supports gold’s bullishness. As the value of the dollar declines, gold becomes relatively more attractive to international investors. This is because gold is priced in U.S. dollars, so a weaker dollar makes gold cheaper for foreign buyers.
In conclusion, despite the recent pullback in gold prices, Ira Epstein’s analysis suggests that gold is still acting bullish and has the potential for further gains. The ongoing global economic uncertainty, rising inflation expectations, positive technical indicators, and weakness in the U.S. dollar all contribute to a positive outlook for gold. As always, investors should conduct their own research and analysis before making any investment decisions.
Can they just provide liquidity to the stock market as we are right back to QE and have been since October and now it doesn't cause inflation anymore. Wow!! Let's go!