Precious Metals End Of Week Technical, CoT And Fundamental Status

2 Year Yield has turned down again, which is a big positive as it implies economic weakness and fading support for the US dollar.

The 10yr-2yr Yield Curve has spiked. Another positive because a steepening curve, whether under pains of deflation or inflation, is a net positive for gold and gold stocks. Note however, that the pain did not start for the stock market until the impulsive spike in the Yield Curve, which immediately preceded the October correction. Is the curve impulsive enough yet? There could be a little more work to do, especially since the major trend for the Yield Curve is still on a flattener.

yield curve

Of course, a steepening yield curve would directly inform this still bearish (or at best, harshly consolidating) indicator, Gold vs. S&P 500.

gold spx ratio

The same holds true for this one, Gold vs. Global Stocks.

gold vs. global stocks

Gold/CRB bounced this week but remains in a hard consolidation. Importantly, Gold/WTI Oil and Gold/GYX (industrial metals) bounced well and bear watching. They are probably the two most important factors within the general Au/Commodities sphere.

Gold vs. Global Currencies (Au/UDN proxy) has been in consolidation in 2019 but is far from broken. Speaking of broken, we noted in NFTRH last year when this indicator broke out and though not visible on this chart, it continues to hold that status.

Bottom Line

What, you wanted pompoms? The above is a snapshot of where things currently stand on the daily chart technicals, an important sentiment indicator (CoT) and some of the fundamentals that actually matter. I think that standing is constructive. Let’s see what next week brings and hope the golden pompoms don’t get out of hand again.

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