Fresh Thoughts on Gold
We’ve done a lot of work on gold on the site over the past six months in various posts trying to determine two important things: 1) Was/is gold a “bubble”? and 2) If the answer to #1 above is “yes”,…...
Strong Linkage Between the Yen and Gold Breaking Down for First Time in Over a Decade
The Yen and gold have tended to broadly trade in lock-step fashion since the latter’s secular lows in the early 2000s. If deviations have appeared in that pattern the Yen has appreciated or depreciated rapidly to make up the difference…
Consolidation Patterns in Gold & Silver Appear to be Ending
Both gold and silver find themselves caught in consolidation/flag patterns in the chart below, formed by their respective lines (1) and (2). Both currently sit on line (2) support. We aren’t suggesting which direction they’re apt to turn in next…
Where Next For Interest Rates?
First off, we plot the 10 year interest rate below. Very nice and tight consolidation pattern that’s taken place along lines (1)-(3) that looks very close to ending. A break above line (1) and rates could shoot aggressively higher over…...
Miners Appear Poised for Further Out-Performance vs. Gold
The chart below plots the ratio of the Arca Gold Miners Index vs. Gold. As you can see, early in 2012 the ratio hit extremely over-sold territory which has typically led to strong bounces whereby miners out-perform the metal itself…....
Are Prices Really the Only Thing That Matter?
If so, what are the prices of the two asset classes below suggesting about the likely winner of the upcoming U.S. presidential election? Or, am I reading too much into the tea leaves here?
If U.S. Bonds are the “Big Short” of the Next Decade, it Likely Means Japanese Equities are the “Big Long”
We got to thinking yesterday and came up with the chart below… It plots the ratio of the SPX vs. Nikkei against the 10 Yr UST price since 1998, when things really started going “global” with LTCM, the Russian FX…...
History Suggests an 80% Chance Gold is Higher a Year from Now with the Potential for Gains Reaching or Exceeding 20%
Technically speaking we recently noted gold has been battling its first real test of resistance since bottoming in May at $1,525. Specifically, gold has been battling its 61.8% retracement level formed b/t its 2011 highs and 2012 lows for the…...
Are Silver’s Best Days Ahead of It?
We struggle with silver. We know some see it as a currency, like gold. As such, QE and central banker largesse around the globe, which will likely go on ad infinitum, should naturally benefit the metal. However, at the same…...
Ratio of Gold vs. Silver Sitting on Support that Has Tended to Coincide with Silver Tops Historically
The two technical set-ups in this post could make for some firecrackers, er, fireworks, in the metals space in the near-term. In the chart below the ratio of gold vs. silver has fallen to the combo of support lines (1)…...