| | | Sunday Night Charts
Gold and the US dollar have recoupled on a daily basis as New York traders have been using a rising USD to push Gold down and the opposite if the USD falls. This trade relationship has largely started about a month ago. There's an absence of leadership from Asian physical buyers. If it weren't for them, we'd be seeing Gold oscillating between $1900 and $2200.
There was an article written by a guy that monitors the Chinese futures market. I wish I would have collected his name. The reason I bring him up is Gold was doing this sideways dance and he then mentioned he thought China was about to push Gold higher. Not too long thereafter, it went on a tear through $3000 and peaked in April at $3500. My position is if Asia doesn't take leadership in the price of Gold, we're going to stagnate.
About six months ago, Peter Schiff was being interviewed and said he was telling his clients to buy Gold mining equities than the metal. It was in recognition of how grossly undervalued they were (and are today). In the HUI chart, there's a big, beautiful Bull Flag with price objective of 560 or roughly 17% higher from here. Equities are gaining on Gold as evidenced by the HUI/Gold ratio reaching 14%. The fabulous earnings reports have really started to get investors to notice our little sector. Just think when they go whole hog into it? Katy bar the doors.
We pay $32 bucks for upgrades, but I still have a problem publishing original content pdf's, snips and charts. For the time being, this post will only have Gold and the USDX. Hopefully, I will be able to get around the IV code's brain fart and get Silver, HUI and HUI/Gold ratio added. So, come back later to see if all five are posted. The HUI Bull Flag is a thing of beauty.
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Credit to tobinator00 |
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