Gold looks like it wants to continue moving higher, but we may need to investigate more closely to see what’s driving it. On the forefront, we see political turmoil in the Euro zone with upcoming elections and a stronger populist movement, which can unhinge the established relations of trading partners and peripheral security issues. Natural resources are also causing alliances to separate and become scarce in the market place. For example, Russia, Saudi Arabia, Iran, and Qatar proxy war in Syria and are pushing US involvement. Equities are approaching all time highs after a decade of trends into levels never seen before, and at the same time the FED is beginning to raise interest rates. Today’s market currents are feeling very uncertain, and risk off may be lurching around the corner. Before the big risk off event that may happen, gold looks like it’s getting some major interest. This interest could be coming from an undercurrent that is not on the forefront of investor media, or any media in fact, but should be. India’s Modi just launched 75 cashless townships across twelve states . A cashless society is coming, and may be moving much faster than you think. One big reason for easing into a cashless society for many countries is the concern that citizens would flood into back or secondary markets similar to Greece, Venezuela, and other countries. The efficiency of a cashless society is great, but the scary part is the question of what happens if or when you want to have a little safety net off the grid? Gold and silver have the great potential to play a big part of this need for security, and I believe that the metals markets will continue to expand and price to reflect the people’s needs. 


Gold Daily Chart

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Daniel Pavilonis

Senior Market Strategist
Daniel started his career as a broker with Lind-Waldock in 2007. He is well diversified in the markets with the indexes and currencies being his favorites. Daniel can often be found quoted in industry sources, such as Bloomberg, Dow Jones Newswires, WSJ and Futures magazine.
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