The market continues to provide very strong bullish signals here. We have excellent breath in terms of number of stocks hitting new 52 week highs. The rotation to cyclical stocks supports the general reflationary theme with commodity related themes the alpha performers. The dollar continues upward across a range of currencies. Due to the Trump trade issues asia indexes have been the great under performer. The Hang Seng particularly with conversely US smaller caps have being big winners. Given the positive chart and internal set up here this has all the impression of running onward over the coming months.
Bullion has seen significant selling in great part due to rising rate expectations making the yellow metal more expensive to hold. Technically her chart was poised for a move. When the sellers came forward the failed rejoin of trend lead to a fast move.
Its a dangerous thing to state in trading but i do believe its a short term market mis price. Therefore i will inves a little time to look for price evidence of a base upon which to go long the yellow metal. Macro wise I suggest real rates are going much lower not higher. Interest rate rises will severely lag the inflation we will see and therefore real rates will go down. Higher nominal rates are therefore misleading.
The Swiss team’s latest here:
And here Fitzpatrick
His gold forecast is bearish indeed. We see.
More coming but all the best for now.
Rich