Jim Sinclair Picks $1,224 Gold

Jim Sinclair picks $1,224 gold for a pause and you can take that to the bank! Once again the master nails the price.  This is a golden opportunity to add to your portfolio of both physical gold and gold stocks.  We will take a look at some specific price targets that come into play as Jim Sinclair picks $1,224 gold for a pause!

This week saw a run up to $1224 in the price of gold, and then a quick bounce off it, followed by  a sudden drop on Friday of $55.50, with spot gold settling, at the close, at $1161.90.  This is the volatility in the gold market that I have been telling you was coming.  Make no mistake, this is just a hint of the future volatility that we will see in the price action of gold.

If you are a regular reader, you will remember the Chinese “gold bubble” talk that I mentioned last week.  This resistance at $1,224 plays right into the Chinese plans to acquire more gold for their reserves at a lower price.  They are determined to move out of their excessive dollar holdings and into gold, but they are smart enough to do it at the right price.  The gold action on Friday was exactly what the Chinese wanted to see as a result of their “gold bubble” talk of last week.  Couple that talk with with the “surprising unemployment numbers” and the Chinese will soon be buying more gold at the price that they wanted.  Let’s take a quick look at the unemployment story  from FDL News Desk:

Unemployment Numbers Should Not Sap Momentum For New Job Creation Spending

By: David Dayen Friday December 4, 2009 6:30 am

The unemployment rate actually lowered in November, while employment was virtually unchanged, as the country lost just 11,000 jobs. This is certainly as good a statistic in this category as there has been for the entire Obama presidency by a wide margin, and the best jobs month since the start of the recession in December 2007.

Still, the raw numbers should resist any call of this as good news:

“In November, both the number of unemployed persons, at 15.4 million, and the unemployment rate, at 10.0 percent, edged down. At the start of the recession in December 2007, the number of unemployed persons was 7.5 million, and the jobless rate was 4.9 percent.”

“Among the major worker groups, unemployment rates for adult men (10.5 percent), adult women (7.9 percent), teenagers (26.7 percent), whites (9.3 percent), blacks (15.6 percent), and Hispanics (12.7 percent) showed little change in November. The unemployment rate for Asians was 7.3 percent, not seasonally adjusted.”

Discouraged workers and long-term unemployed actually edged up, which may account for the decline in the overall jobless rate.

Regardless, this is a picture of an economy that still needs some help in job creation. A better decline is still a decline. A 10.0% jobless rate is still horrific. And the economy needs to produce 150,000 jobs a month, or 1.8 million a year, just to keep up with the number of new Americans entering the workforce. That is far from happening.

There’s also the type of jobs that are being created right now which should cause a bit of concern. Construction and manufacturing jobs are still falling, albeit at a slighter decline. The job creation sectors?

“Employment in professional and business services rose by 86,000 in November. Temporary help services accounted for the majority of the increase, adding 52,000 jobs. Since July, temporary help services employment has risen by 117,000.”

Health care employment continued to rise in November (21,000), with notable gains in home health care services (7,000) and hospitals (7,000). The health care industry has added 613,000 jobs since the recession began in December 2007.

Temp jobs aren’t much of a relief, especially in terms of job security.

The new jobless numbers are surprising and relatively good, but the statistics show that public investment remains a need for the economy. This should not be a time that words like “our resources are limited” are allowed to predominate. Instead, other lines said at yesterdays job summit, like the idea that public funds for job creation “would be a good investment in the future,”  remain completely operative.

The bold type was my addition for emphasis.  The government money should come to small business through tax moratoriums, not government make work programs.  If I had been at the “jobs summit” I would have asked, “Why are you having this summit now, where have you been for the last nine months?”  Then, if asked, my suggestions for creating jobs would have been simple,  cut taxes and slash government spending while reducing government’s meddling  in the private sector.  Mr. President, get out of the way!  Your Socialist/Marxists programs are the problem, not the answer!

I only wish that these solutions would be been printed in the main stream U.S. press, but that’s not going to happen because they are too busy cheer leading.

The unemployment numbers came just as the U.S. is about to put $131 billion worth of U.S. debt on the market next week.  I guess the unemployment numbers makes both the  Chinese and the U.S. Treasury happy campers!

The charts for both the dollar and gold tell the story as they reversed course as soon as the unemployment numbers were released.

The move in both the dollar and gold could not have been any tighter if the Blue Angels were performing the maneuver!

Jim Sinclair Picks $1,224 Gold!

Jim Sinclair has had the $1,224 number out there for gold for some time now and once again he has nailed the number.  I have read Jim Sinclair on jsmineset.com for a long time and I know that he is the “MAN” when it comes to predicting gold’s price objectives.

I highly recommend that you take advantage of his insights on a regular basis.  When I mention specific targets for gold I use Jim’s numbers because he is consistently right. I don’t know what model he uses to produce his numbers, but I am smart enough to know that you do not have to know what enables a helicopter fly in order to use it to get somewhere.

Jim called for gold to hit $1,224, PAUSE and then move on to $1,278.  I am not going to question the master, but rather, be thankful that he is out there, shining the light on the convoluted situations that we are facing.  Thank you sincerely, Mr. Sinclair.

Jim has indicated two support points for this  pause, $1,156 and 1,089.  If we were to reach either one, I will be buying with both hands.  I have already picked up some stocks that I was interested in on Friday as the stocks tumbled on the unemployment news.  If we approach Jim’s next numbers I will be buying more.

My only concern is that the market is so susceptible to any news that it might turn on a dime with the slightest nudge.  That is why I stepped in and bought on Friday.  If it turns quickly I will be able to profit from the move.  If not, I will add more as the next price points appear.  One thing is for sure:  This is a pause only in the upward movement of gold!

The Plot Congeals Around Rumors of Japan’s Intentions to Sell U.S. Treasuries

U.S. Treasuries Biggest Overseas Buyer May Sell

By David Wilson

Dec. 4 (Bloomberg) — Speculation that the Japanese government plans to sell $100 billion of U.S. Treasury debt to pay for domestic spending may impede the Obama administration’s borrowing plans.

Japan has been this year’s biggest buyer of Treasuries, which means it has done more to help finance the widening U.S. budget deficit than any other country. Its holdings have risen by $125.5 billion, according to data compiled by the Treasury. The comparable figure for China, which surpassed Japan last year as the largest international investor in the securities, is $71.5 billion — 43 percent lower.

Japan will inform the U.S. about the possible $100 billion sale, according to a Market News International report yesterday that cited rumors from unnamed sources.

There’s absolutely no such proposal right now, Chief Cabinet Secretary Hirofumi Hirano told reporters today in Tokyo.  That kind of talk often surfaces at this season

The Treasury is selling $74 billion of notes and bonds next week, along with $61 billion in three- and six-month bills, to help finance the deficit.  Karthik Ramanathan, the department’s director of debt management, said a month ago that bond-market participants ought to expect $1.5 trillion to $2 trillion of sales in the fiscal year ending Sept. 30, 2010.

If this turns out to be true, Little Timmy Geithner and the Community Organizer In Chief are going to have a hard time funding their Socialist/Marxist takeover of the U.S.  Only time will tell how this story unfolds.  The bottom line is the dollar will remain under pressure once this little rally ends.  Once .74 breaks for the dollar, it could quickly drop to .72 where a major battle will begin to keep it from falling of the cliff.

This will launch gold on it’s next dramatic up swing to and through $1,278.  These pullbacks are the time to add more to your physical gold (which I would not be selling for any reason in the near future) and to your gold and silver stocks, which is where you can speculate and trade moves with a portion of your portfolio.

Jim Sinclair picks$1,224 gold for a pause, and the markets say “make it so”.  Take advantage of this buying opportunity because it might not last long!

Till next time, good luck and good trading!

Also Noteworthy:

• Startling Unemployment Numbers!
• Markets Await “Stimulus”
• Take It To The Bank, Gold Is Going To Run!
• Bernanke = Inflation
• Gold To Retest Lows

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