Oh, were the price of Gold only to be rising with the local level of snow! Here in iconic Squaw Valley, wherein winter Olympians raced for the Gold back in 1960, this season’s official snowfall total stands at 623″ (16 metres), some 62% above the 384″ (10 metres) accumulated to this date in 2016. Were Gold up by the like percentage from 1251 on 11 March 2016, ‘twould today stand at 2027. But as the above panel shows, 10 weeks into 2017 now finds Gold 47 points (-3.7%) below where ’twas through the same stint in 2016, having settled out the week on Friday at 1205, the buyers going cold and the once-spritely recent uptrend getting rolled.
Indeed, the ski patrol has been quite busy hauling its victims downhill across these last 21 trading days, for as the following graphic shows, save for the S&P 500 (“SPOO”), our BEGOS Markets components (Bond, Euro/Swiss, Gold/Silver/Copper, Oil, S&P) are all on the skids per their negatively-tilted grey trendlines. And except for the EuroCurrencies, the baby blue dots which denote the markets’ 21-day linear regression trend consistencies are not looking very healthy:
For the precious metals, you’ll recall our having eyed Gold 1220, else 1200, as support levels, price reaching yesterday as low as 1195 before snapping back up a dozen points following the “it could have been even more robust” StateSide payrolls data basically meeting its marks. Gold being Gold, ’twas one of those “sell the rumour buy the news” events. And as for Sister Silver, her week’s low of 16.86 nearly tapped the 16.81 “fibonacci retracement level” we’d graphically pointed to a week ago. So is that it for the precious metals’ downhill show? The above panels’ declining “Baby Blues” make us think “no”.
Specific to Gold, nearing ‘twould appear is a flip of the weekly parabolic trend from Long to Short. For as we next go to Gold’s weekly bars, the present price of 1205 is but a mere 20 points from penetrating the flip-to-Short level of 1185. Given Gold’s “expected weekly trading range” is presently 36 points, such flip could well come this week, perhaps in the immediate snow-blowing aftermath of the Federal Open Market Committee’s policy statement in raising the FedFunds rate to a 0.75%-1.00% target range come 11:00 Pacific this Wednesday, 15 March. Here are the bars and parabolics from a year ago-to-date:
Leave A Comment