YI Breakout or retract?

[insaneinvestor]

Just curious to the opinions of others.

 

[nazzdack]

The correct answer is (c).........Neither. Precious metals are liquidity-driven and should correlate closely to the S&P and Dow Jones.

 

[Mr. Moneypenny]

Quote from nazzdack:

The correct answer is (c).........Neither. Precious metals are liquidity-driven and should correlate closely to the S&P and Dow Jones.

if SP500, Indu go up so do the precious metals?

 

[Bowgett]

Quote from Mr. Moneypenny:

if SP500, Indu go up so do the precious metals?

Yes

 

[Mr. Moneypenny]

Quote from Bowgett:

Yes

is there a reason for this correlation? I heard that precious metals are a "safe haven" if the stock market crashes and not if it rallies...

 

[SethArb]

not always true ...

 

[ess1096]

Quote from Mr. Moneypenny:

is there a reason for this correlation? I heard that precious metals are a "safe haven" if the stock market crashes and not if it rallies...

Actually, they are more of a hedge against inflation, or the falling dollar, than they are against the stock market.