Wednesday, December 20, 2017

An update on gold (but not frankincense or myrrh)

Mid-week market update: There is not much that can be said about the stock market that I have not already said. The small cap seasonal Santa Claus rally that I wrote about appears to be proceeding as expected, though the tape is thin and most professionals have shut down their books for the year.

Next week is Christmas. It is said that the three kings visited the infant Christ with gifts of gold, frankincense and myrrh. While there is no active and liquid market for the latter two gifts, gold is still traded and an update on the outlook for gold would be timely.

Gold is getting intriguing. Analysis from Nautilus Research indicates that we are entering a period of positive seasonality for gold.

At the same time, gold stocks are testing a key relative downtrend line. Should it rally further, it would be a signal of possible further future strength.

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

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