Gold Editorials & Commentary

GLD - new buy signal this week.

Gold has been weathering some considerable selling pressure lately, which has naturally turned sentiment quite pessimistic. Bearish commentary abounds, with all kinds of predictions for further declines.

What an incredibly complex confusing and treacherous month. It can be safely said that 80% of the activity is almost totally kept from the public. The financial system is breaking in an accelerated fashion.

For eighteen months the HUI has been chopping out a sideways trading range that looked like it had the potential to be a huge consolidation pattern.

It was a down week in US markets but many of the leading stocks held up very well or even moved quite a bit higher in a few cases.

GLD - on sell signal.

For well over a decade GATA has been "ranting" about the evils of the Fed and how the world economy is going to collapse in a heap.

Sellers hammered gold again this week on news from the Fed. The minutes from its latest FOMC meeting convinced traders the odds for a third round of quantitative easing are waning.

The big X-factor for the stock market in the coming months will clearly be China.

When reviewing the long-term performance of the gold sector in previous TSI commentaries we looked at performance in nominal dollar terms and in gold terms, but as far as we can recall we never looked at performance relative to the broad stock market.

"The House of Representatives ... can make no law which will not have its full operation on themselves and their friends, as well as the great mass of society.

The past couple months investors have been focusing on the equities market. And rightly so with stocks running higher and higher.

There is no indication on gold's long-term chart that its bullmarket is over, it appears to be simply pausing to consolidate after its sharp rise last year.

GLD - on sell signal.

Around this point in the fractal cycle in the late 70's, Gold busted out of its channel to rise sharply higher, along with Silver. Silver's channel top will lie up around $68 to $70 over the coming months which we believe will be reached in 2012.

A very important objective change has taken place in the gold market. Its price is not moving above the resistance established in the 1600 to 1900 wide berth range. Its price is not moving below support in the same wide permitted range.

In our 19th March commentary, we wrote:

All in all it was a pretty quiet week in the US markets long with precious metals while we saw a huge and swift drop in terms of US bonds this past week which is not something we see everyday but markets seem to be digesting that news rather well.

GLD - on sell signal.

Gold is forming its second bear box since last September. So what does that mean?

Ben Bernanke's smiling face on the cover of the April issue of The Atlantic is a testimony to how short America's collective memory is.

The beleaguered gold stocks have spiraled lower this month, heaping misery on poor fools like me naive enough to invest in them. Dwindling interest and capital has left this realm a desolate wasteland, I've rarely seen anything so deeply out of favor.

Gold and silver have been in corrections since they both had exceptional rally phases that topped out last year. Gold topped out with a double top, one high in August and the other high in September.

Recently, I read an article about how Congo born, Dikembe Mutombo, an all-star NBA defender, was nicely scammed in a fake gold deal.

Gold and silver are very close to entering the mania phase of this bull market. In order for gold and silver to go into the mania phase, value has to be diverted from somewhere, and that "somewhere" is most likely stocks.

Recently, I read an article about how Congo born, Dikembe Mutombo, an all-star NBA defender, was nicely scammed in a fake gold deal.

This week may provide some trading opportunities for us if all goes well now that most traders are investors are all giddy about stocks again.

It was another strong week for US markets that is set to power many stocks higher soon. I've rarely seen so many great setups for swing trading in the leading stocks and we are and will be taking advantage of that in the week ahead.

GLD - on sell signal.