Dithering by the FED, coupled with associated weakness in the US dollar have both combined to provide gold bugs with some much needed good news in the last couple of week, with gold rising Lazarus like from its trough of despondency in the $1110 per ounce region, to positively sparkle at the $1190 per ounce.
This Morning’s Trending Stocks
With China facing an economic slowdown and many questioning whether or not the nation’s government data presents a reliable picture of just how bad the situation is, metal prices have fallen to multi-year lows.
Whenever I put the proverbial pen to paper and start to write about gold, I can already hear the chorus of dissenting voices from those traders and investors who only view their beloved metal as bullish, and can never accept the reality of what is actually happening on the chart.
For oil traders and speculators the summer months continue to deliver stellar trading opportunities, and whilst equity investors are wringing their hands, the WTI contract shows no signs of wanting to reverse just yet.
Last week, the People’s Bank Of China allowed the yuan to fall sharply, causing chaos in share markets and drawing criticism from multinationals who said the move would hurt their businesses.
When considering the chart for crude oil, there is really only one question to answer and it is simply this – how low can it go! And to answer that particular question we need to consider the charts across a variety of timeframes.
Of the currencies likely to be in focus this week, I really did not expect the week to start with a further move lower for the Loonie (and the Canadian economy) which have both been badly affected by falling oil prices (USO, quote) .
For silver investors, and those who rushed headlong into buying when silver prices hit the $50 per ounce price point, it is perhaps the monthly chart which makes depressing reading, with the meteoric rise now reflected in an equally dramatic fall, and mirroring what has happened which in the price of gold.
Despite being bearish on gold (GLD, quote) for so long, and sounding to many gold (IAU, quote) traders and investors like a old recording stuck in a groove,
