We have a big week ahead of us with banks. We have the Federal Reserve on Wednesday. I think at a minimum the Fed and the European Central Bank will raise rates by 25 basis points.
The stock market is getting a little long in the tooth. I don't feel that way in the metals though. The gold market is staying and fighting at the 18-week moving average of closes.
I am going to trade further upside cautiously and watch the market carefully to see if it still has an intention of reaching 5000+ before a major bear market begins.
It’s gold versus fiat trench warfare. The dollar went to a new low, but gold didn’t go to a new high. Gold and US interest rates are more correlated than gold and the dollar.
We're having a big rally in the gold market, up to 1980. Silver takes off. So what's going on? Well, it's the dollar. The dollar continues to stay under pressure.
Softer economic data gave precious metals a boost with rate expectations waning and the dollar sinking. The worst performing precious metal for the week was gold, but still up 1.39%.
When you come to the daily bar chart, you can see the sideways action that has come into the market. The pattern has been one of higher lows and higher highs. By any definition, that's called an uptrend.
