The Two Most Important Charts You’re Likely To See All Day

August 8, 2013

Featured is the weekly gold chart, with the US dollar at the top.  The rising dotted lines in the gold chart coincide with falling dotted lines in the US dollar index chart.  The long uptrend line supporting the dollar coincides with the latest correction in the gold price. 

               

The arrow in the dollar chart points to a possible breakdown below the rising trend-line in the dollar (once price drops below the arrow).  In the event that this occurs, it is very likely to coincide with the gold price rising above the arrow in the gold chart.  The supporting indicators at the bottom of the chart are turning positive.   (Chart courtesy Stockcharts.com)

This chart courtesy 24hgold.com shows the amount of gold bullion at the COMEX that is registered and available for delivery, currently 935,000 ounces - the lowest amount in at least five years. Notice how the previous low in this chart in mid- 2011 (single dot), coincided with the gold price bottoming at $1500 and subsequently rising to $1915. The high point in this chart at the end of 2011 (two dots), coincided with the gold price topping out at $1915. “History does not always repeat, but it often rhymes"..Mark Twain.

Peter Degraaf is an online stocks and bullion investor with over 50 years of investing experience.  He produces a daily report for his many subscribers.  To receive a sample copy of a recent report, send him an Email itiswell@cogeco.net or visit his website www.pdegraaf.com.

Disclaimer:  Please do your own due diligence.   I am not responsible for your trading decisions.  Investing involves risk.

Peter Degraaf became interested in silver and gold when the Governments of the US and Canada proceeded to remove silver coinage from circulation in the mid 1960s.

He noticed the effect of Gresham’s law:  “Bad money drives out good.” He became a coin dealer, attending coin shows all over The US and Canada. In 2001 he semi-retired from coin sales and concentrated on investing in precious metals. He mastered the art of technical analysis and applies this to his investments. In 2001 he started publishing a daily and weekly market report.  His website is at http://www.pdegraaf.com/.

The volume of all the gold ever mined can occupy a cube 63 feet on each side.