Gold Still Getting A Bid; But Stocks Blowing Their Lid

Essentially in sequence to last week's missive "Gold Gets a Bid; Stocks Resume Skid", we again recall that 1966 classic Bob Hope/Elke Sommer/Phyllis Diller comedy thriller "Boy, Did I Get A Wrong Number!"

To be sure, the price of Gold got sufficiently bid this past week such as to finish back (barely) in the 1300s as a weekly close for the first time since February 22, settling Friday at 1302. Reluctance to seriously sell continues. But as for the "wrong number" and seemingly against all odds, the stock market as measured by the S&P 500 not only gained as much as 3.2% intra-week, but came within 3.7% (110 points) of its all-time high established last September of 2940. Let's dig in a bit further...

On Gold

Yes, price's resilience remains, which within the guise of the weekly parabolic trend being Short is an encouraging aspect. But as also remains starkly evident per the yearly price tracks in the above Gold Scoreboard, price is as stuck as ever at the bus station. Indeed when price on a broad basis basically stays "the same" year-in and year-out, the challenge for the weekly Gold writer is to be sufficiently creative toward sustaining readers' enthusiasm: "Another week of nothing': how ya gonna couch it this time, buddy?"

Well "buddy", this is the 487th consecutive Saturday edition of The Gold Update and we're still here, (wherever here may be, in this case back in dear old Monaco). And as for "couching it", enough bidders for Gold are about -- at least to this point of the Short trend -- to keep price pretty much within The Whiny 1290s without so far having fallen back into The Box (1280-1240). That noted, per the following chart of the Weekly Bars (and given that Gold's "expected" weekly trading range is at present 25 points) it's a distant stint for price in the new week to reach up the 42 necessary points to 1344 which would flip the trend back to Long. However, we'll always take price being resilient rather than its being down, and moreover, the real shocker in the graphic is the Gold/Silver ratio being near historical extremes at 85.2x, (the millennium-to-date average now up to 64.1x):

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