Which way? A Gold Timing exercise
- Thread starter themickey
- Start date
On Globex,Gold is approaching what would be a quadruple top.
I cant see that top holding with the obvious global turmoil and uncertainty.
Then again,traditional flight to safety routes may be changing.An,unusual,quad top and retracement may be an indicator of a shift in traditional thinking and emerging options.
Here's a comparison % chart of gold (black) versus HG copper (red), over 3 years, notice the disparity in percentage, copper outperforming gold for the most part.
Then notice where I've drawn a vertical line in October 2022, this is where imo they both agree on difference, copper and gold bottomed together approx.
If I then zoom to this area of Oct 2022 I get this chart....
Where gold has outperformed copper.
Me thinks gold will rest up, copper will begin a catchup run.
Vertical October line on extreme LHS of chart.
Note: copper and gold are frequently mined together from same ore body.
Then notice where I've drawn a vertical line in October 2022, this is where imo they both agree on difference, copper and gold bottomed together approx.
If I then zoom to this area of Oct 2022 I get this chart....
Where gold has outperformed copper.
Me thinks gold will rest up, copper will begin a catchup run.
Vertical October line on extreme LHS of chart.
Note: copper and gold are frequently mined together from same ore body.
Once upon a time I was a gold bug, not any longer, so my wife has taken over the mantle, she loooooves all things gold stocks, that's nearly all she trades although she did once buy an iron ore miner.
Anyhow, wife is really exited, daily recently I'm hearing about gold above US2000.
Well I'm not excited nor am I sure it will hold this level.
Gold continues to hit the 2000 level and fall back. You would think maybe this time it will breakout above for good.
My opinion, I think once again it will fail.
It has never had a monthly close above 2000 and with 3 US trading days to go, that's enough time for it to suck in the gold suckers and spit 'em out again.
December will see gold pull back again imo. Lets see......
Historically December is a strong month for gold, Asians buy up for the New Year gifts, but this year they're just as broke as the rest of us honkies.
Anyhow, wife is really exited, daily recently I'm hearing about gold above US2000.
Well I'm not excited nor am I sure it will hold this level.
Gold continues to hit the 2000 level and fall back. You would think maybe this time it will breakout above for good.
My opinion, I think once again it will fail.
It has never had a monthly close above 2000 and with 3 US trading days to go, that's enough time for it to suck in the gold suckers and spit 'em out again.
December will see gold pull back again imo. Lets see......
Historically December is a strong month for gold, Asians buy up for the New Year gifts, but this year they're just as broke as the rest of us honkies.
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Sure Gold is (naturally) correlated to Silver and other precious metals. They move together for the obvious reason: when institutional investors (traders) make a purchase (or a sell) of Gold they do it in their portfolio allocation to precious metals, of course, the big allocations are going to gold followed by Silver and Platinum, (In my observations Less frequently Palladium, I don't know why).
The reason Silver is "roughly" volatile compared to gold is due to their market cap and mainly the price of silver itself compared to Gold (The gold/silver ratio (GSR)) which is right now around 81.24. To illustrate this volatility behaviour, when we put a Motorbike, a Car and a Truck .. in one start line and let them start which will go first? .... obviously the Bike because it is lighter, moves faster, but in the long run, The Truck will over outperform the rest.
The reason Silver is "roughly" volatile compared to gold is due to their market cap and mainly the price of silver itself compared to Gold (The gold/silver ratio (GSR)) which is right now around 81.24. To illustrate this volatility behaviour, when we put a Motorbike, a Car and a Truck .. in one start line and let them start which will go first? .... obviously the Bike because it is lighter, moves faster, but in the long run, The Truck will over outperform the rest.