A Market Timing Report based on the 12-13-2013 Close published Sunday December 15th, 2013
Gold attempted a rally this week which mostly failed, although we ended the week above the 11-25 low of 119.13, which is a slight positive.
The fact that we have to squint to find good things going on with gold is no shocker. Gold plays off of the real interest rate (return above inflation) and needs a weak currency and/or significant inflation and/or a panic to rally. We have no panic, and the Fed is threatening to cut back QE which would both strengthen the dollar and allow rates to edge up. The dollar is likely to strengthen in the absence of QE infinity, which makes gold weaker all things being equal. Stronger dollars buy more gold.
Read last week’s post on GLD by clicking on the link to the right, if you have not read it. You need to protect your gold profits at some level.
Here’s the chart:
GLD is languishing near major support. It MUST hold.
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Look for updates on the main chart tracking pages this week as I feel they are needed and comments via Twitter.
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