In the gold market, you're staying underneath the 18-week moving average of closes (MAC). That's an important thing. It keeps the bias of the market down.
If there is a bright side to this scenario, it lies in the implication that a debt deflation more destructive than consumer inflation we are likely to experience is a while longer in coming.
There is both bullish and bearish potential for silver. Note the negative divergence between gold and silver as gold soared to new highs. It is a potential bad sign.
The firming Dollar suggests the Fed’s foot is “expected” to stay on the interest rate pedal. The Bond, Euro, Gold, and the S&P 500 (BEGOS) Markets are down except for Oil.
Investors can hedge some of this selloff risk in counter-moving gold and its miners’ stocks, which tend to surge on balance when stock markets materially weaken.
When I can earn 5-6% on a certificate of deposit (CD), why would I want to own gold? Inflation is still here. If the dollar drops, then I want to own gold.
