Gold bottoming at the December 2017 low
Gold has been bottoming near the early December 2017 low last Thursday June 28. Despite an uptick on the last trading day of June the $1252.4 close isn’t what gold investors had in mind when they saw the metal rally to gain $1300 by year end. The below graph runs till last Monday. A first plunge mid May brings the yellow metal below $1300 for the first time in 2018. The timid recovery is smothered after the FOMC meeting raising the FED interest rate with another quarter. The narrative is that four rate hikes are not to be excluded in 2018 and that the FED monetary policy no longer is accomodative. This brought about an abrupt rise in the USD index. That last rise proves not sustainable as the USD index is unable to hold on to the 95 level.
Gold price in USD in the first half year 2018 (click to enlarge) |
Inverse of the USD index. A perfect correlation with gold implies that the graph profile should look identical. (click to enlarge) |
The USD has been weakening till about February, trading sideways till mid April. The green back started strengthening throughout most of May with a second peak after the FED rate hike. Gold is behaving like a foreign currency, mimicking the inverse of the USD index, though imperfectly. Despite the USD index off its high, the yellow metal continued its unabated descent till last Thursday.
When plotting the gold price in USD against the dollar neutral gold price (graph provided by Kitco) it is obvious that the rally in January was entirely due to the USD slide. The dollar neutral gold price was not in an uptrend. It bottomed by mid March.
Gold priced in USD and Kitco’s dollar neutral gold price. |
The opposite holds from mid April to early June when the gold price slide was completely due to the USD strengthening. Kitco’s dollar neutral gold price maintained its moderate uptrend. Since the FED rate hike however, gold is sliding rapidly, both in USD and in foreign currency: the gold slump aggravated.
July continuation
Equally important from a tactical point of view was the bounce on July 3rd to $1252.4. Apparently the July 2nd bottom was the usual short selling exhaustion by US speculators unwilling to hold on to their short position over July 4th.
Source: https://gwyde.blogspot.com/2018/06/gold-bottoming-at-december-2017-low.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.
