I watch the metals and the miners… but, sometime, during the day, yesterday… I got an email from the stockcharts.com people, specifically John Murphy, and got all the whys.
Bond yields have fallen to their channel lows. Conversely, bond prices have risen to their channel highs. The $USD has fallen to about its 200-day mov avg line. And, gold? Well, gold has risen to its 200-day mov avg line. Since all of these 4 components are nearly all right at their respective support or resistance lines… the expectation is that they could now all reverse and go back the other way… or, and what many will be watching for; each could break their respective lines of support or resistance, and then we’ll see an all-new move in the direction of their breaks.
If those lines hold… gold will go down. But, if those very same lines should be broken, gold will lift-off. I’m of an opinion that scenario number 2 is what will happen, and gold will launch. If so, we’ll call it, and got on-board for that ride. More to follow…