While some are ready to pronounce gold DEAD as a safe haven asset, the chart picture denotes otherwise, especially given the broad weakness in the commodity sector as a whole and the rallying Dollar, which continues its technical march towards the 84 level on the USDX. Whenever I see gold moving higher alongside Treasuries and the Dollar, it tells me that all such talk about gold being useless as a store of wealth, is simply false. The chart will tell you more than all the pontifications of the short-sighted analysts and pundits.
To get any sort of excitement going beyond the continued value based buying of gold, it will need to push through the $1600 level and not falter.
The mining shares are defying the general trend of equity selling today which is aiding the cause of both metals. Note that for the last two weeks, it is the mining sector which has been the bright spot in the otherwise dim US stock market.
I wonder how many trips gold has to make to the 1530 area before enough is enough.
ReplyDeleteI have seen many times in the last 10 years, at least, where the short term trend intersects with the longer term trend at which point the longer term trend reasserts itself. I know that gold is in a longer term uptrend, for very powerful reasons, and also that it is in a shorter term downtrend. At some point, whether its a price, an area, or something, that long term trend needs to reassert itself.
ReplyDeleteSimply said the investor big or small is confused, more like being misled anticipating knee-jerk reaction while the PM buyers are catching the knifes ?
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