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Despite Signs To The Contrary, Gold At Or Near Top
The thing that most likely raised quite a few eyebrows this week was – in addition to gold’s recent move by itself – the fact that gold rallied mostly without the dollar’s help. Yesterday (Jan. 5) I wrote that one swallow doesn’t make a summer and that a single session rarely changes much. We didn’t have to wait for long – the situation seems to be getting back to normal. Figure 1 – COMEX Gold Futures Gold Rallied Only Insignificantly HigherAfter the January 4th rally, gold moved only insignificantly higher, and it’s even a bit lower in today’s pre-market trading. Figure 2 – USD Index While th...
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Gold Seeks Direction As US Dollar Index Slips
As of Wednesday (Dec. 30) morning, gold is range trading and remains more or less flat as it seeks momentum. As we wait for the precious metals to act on a catalyst, let’s also take a look at the Euro’s relation to the US Dollar and how both impact gold. Q3 2020 hedge fund letters, conferences and more Gold Doesn't React To The US Dollar Index SlippingOver the last 24 hours, the precious metals market did more or less nothing, despite the new daily decline in the US Dollar Index. The latter is now testing its monthly and yearly lows, while the PMs are not. PMs – as a group – are not reacting t...
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The Correction In Gold Is Not Over [Charts]
You are—face it—a bunch of emotions, prejudices, and twitches, and this is all very well as long as you know it. Successful speculators do not necessarily have a complete portrait of themselves, warts and all, in their own minds, but they do have the ability to stop abruptly when their own intuition and what is happening Out There are suddenly out of kilter. ~ Adam Smith, “The Money Game”Good morning!In this week’s Dirty Dozen [CHART PACK] we look at qualitative and quantitative sentiment signals, dive into gold’s recent fall and explore what it means. Pour over a key ratio chart that gives a ...
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Probing Gold’s Bottom
As 2020 is wrapping up, investors are trying to narrow down the target for gold’s bottom in the coming weeks. And as the yellow metal is experiencing what appears to be its worst month in the past four years, the Gold Miners Bullish Percent Index ($BPGDM) once again provides us with some key insights into reading the bearish signals for the precious metals.Q3 2020 hedge fund letters, conferences and moreBPGDM Shows Overbought ReadingLast week, the BPGDM showed the highest possible overbought reading.**The excessive bullishness was present at the 2016 top as well and it didn’t cause the situati...
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Will The Second Wave Of Coronavirus Boost Gold?
Brace yourselves, winter is coming! This is what Ned Stark in the Game of Thrones told his people to prepare them for the leaner times he saw coming. While one of the biggest threats in GOT were the White Walkers, in our reality, the pandemic is again the greatest danger. As the chart below shows, the second wave of the coronavirus infections is no longer a mere possibility – it’s happening all over the Europe and in the United States (although in the latter country, we could also say about one big wave or three waves). In particular, in France, Italy, Spain, the UK, and in the US, the number ...
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