Stocks And Precious Metals Charts - A New Phase In The Currency War - Stock Option Expiration Friday

The Dollar took a dive in the afternoon.

Gold and silver broke up higher with some energy.

There are indeed a couple of ways of marking the current formation on the gold chart. I have chosen a symmetrical triangle, but one could also make a case for an ascending triangle, or even a bullish flag.

What is more important is that each of these describes an underlying condition of an item that has risen in value, and that is taking a pause to consolidate its price gains before moving higher again.

Gold and silver both seem to be doing this.

Stocks also caught a bid, and the perception of risk fell as measured by the VIX.

So what is going on here?

The central banks of the Western world have declared themselves for low to negative interest rates, which is another form of printing money.

And despite modern theories to the contrary, when governments print money, the wise find forms of refuge for their wealth.

And for now, even stocks, and the bubble in financial assets provides such a refuge. Only cash is trash.

Well, that certainly is a weighty and expansive manner in which to view things, but it has served well during this period of bubble-nomics.

Let's take this one step at a time. The manner of any retracements and future short term moves will help to identify the specific nature of this breakout.

But it does appear that the years-long dampening of the precious metals have been the last great push of the NY-London gold pool and that a new phase of the currency war has begun.

Have a pleasant evening.

(Click on image to enlarge)

(Click on image to enlarge)

(Click on image to enlarge)

(Click on image to enlarge)

(Click on image to enlarge)

(Click on image to enlarge)

(Click on image to enlarge)

(Click on image to enlarge)

(Click on image to enlarge)

(Click on image to enlarge)

(Click on image to enlarge)

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.