Gold’s Big Picture

This chart needs no mark ups.  Very simply, gold needs to follow the miners (already crossed) and cross MACD up and then take out the area where the Bollinger Band mid point meets the (red) EMA 45.  Combine these with a green RSI over 50 and AROON going 0+ and you’d have a genuine bull market in gold.

 

 

This chart will be stored in the Public Charts list linked above so you can follow its progress any time.

The growth news in China and corresponding bump in base metals has nothing to do with gold.  Don’t let that ‘China demand’ hype get you*.  I’d also filter the Modi/India hype as well.

And then there is also the CoT extreme commercial short and extreme large speculator long status to deal with.  It’s usually negative, but there is something fishy here as if they made it so blatantly obvious to make it look like shorting gold is like shooting fish in a barrel right now.

But is it?  I am not shorting gold and indeed held it calmly since that blow off top in 2011 (well, actually since 2002, but who’s counting?).  That is for value considerations and I feel that gold has not had more practical value at any point in its bull market that it does today.  But for all you price chasers out there, the big picture chart is not yet bullish.

It’s now available for anyone who wants to watch it as it updates over the coming days, weeks, months and years.

* If China really does grow sustainably, there would be better places to invest for asset price appreciation than gold although there is always a case for gold as a monetary value instrument the way the current global system is run.