Monday, November 28, 2016

Too early to buy gold and gold stocks

The stars seem to be aligning for a revival in gold prices. Prices saw a nice bounce today as equities weakened. The trends in other asset classes, such as stocks, bonds, and the US Dollar, look very stretched in the short-term and poised to reverse. From an inter-market analyst viewpoint, gold also seems to be in that camp.

The chart of gold below tells the story. Bullion prices have been falling and they are oversold on RSI-14. The violation of key support at the 1205-1210 zone has prompted high volume selling, which is indicative of investor capitulation. From a technical perspective, gold prices are now testing a Fibonacci retracement level at 1170.

This seems to be a classic setup for a revival in gold prices. Not so fast! While gold prices may stage an oversold rally here, a durable bottom may not be in place just yet.

The full post can be found at our new site here.

Announcing our Black Friday/Anniversary promotion!
We are making a limited number of discounted annual subscriptions available at a price of US$199.99, which is US$50 off the regular price of US$249.99, for the first year. This offer is open to the first 100 subscribers, or until December 15, 2016, whichever comes first. Click on this link to subscribe and use the code anniversary2016 at checkout to get the discount.

Hurry before they're all gone!

No comments: