Gold vs. the Euro index can be a leader for gold in nominal terms. I was reminded of this when reading an aside within Tom McClellan’s article Copper Leads the Way Lower for Bond Yields, posted at Biiwii. His article was interesting to me because its thesis supports my view that long-term bond yields are due to decline. But the aside about gold and euros got me pulling some charts for this post.
Au-XEU (daily) has declined to a support zone and retraced over 50% of the 2016 gain.
Last night I tweeted out (from a dive bar near Google) a picture of me going over the final draft of my first screenplay……..
Since my creative juices are flowing, I had another movie idea while walking the dogs, which I’m offering here, free of charge. Just put my name in the credits somewhere, OK?
Just when you think the tape has gone into a persistent vegetative state it can sometimes surprise you, and ES did that yesterday with an unexpected trend down day. This is good news from a technical perspective as there is usually a spike down shortly before a significant high, and I was thinking that ES most likely didn’t have the juice to manage that this week. We call this the low before the high, and, if this is that move, then we are looking for a low shortly into a retest of the all time high and likely marginal new high. If that marginal new high can be managed this week then the first day of 2017 may be the start of a significant decline.
Last night, gold did its “gain a lot, then lose some ground” routine, which seems to be a habit these days. The good news for those long gold (as I have been since the 15th) is that it managed to push its way past 1145. Hopefully, that level will offer a new level of support for the beleaguered metal.