Market Timing Brief for the Gold ETF (GLD) and 10 Year Treasury Yield (TNX) Closes On 5-02-2014: Gold Bounces Off Its Base on Declining Yields

A Market Timing Report based on the 5-02-2014 Close published Sunday May 4, 2014

Gold held its base once again this week and bounced. It’s been a bit challenging to hold gold lately, even after the great start to the year, but sometimes you need to hold your nose and follow your plan. This was one of those times.

Note that GLD faces immediate resistance, so no, this is not the right time to buy. Wait for the next technical breakout above the overhead resistance shown if you did not buy at the low on Thursday.

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GLD chart:

Gold bounces from base.

Falling rates have supported the gold move off the base.

Ten Year Treasury Note Yield Chart (TNX, TLT, TBT):

tnx-10-year-treasury-note-market-timing-chart-2014-05-02-close

10 Year Treasury still cooperating with Dr. Yellen.

But now rates could head back up again, unless the Ukraine gets even worse. In the latter case, we could see new recent lows in yields with rising metals prices.

Inflation is another concern for the market or should be as the Fed is guaranteeing it will work hard to create inflation as I pointed out on StockTwits®/Twitter® this past week. The Fed keeps changing its targets, so it can keep doing what it’s doing in regard to inflation – drive it higher. That will help gold.

My comment was highlighted on StockTwits® here: Fed Lowers QE Again (scroll down to see it “@SunAndStorm”)

And there is much more on all the markets I report on (18 markets in all) in this month’s issue (out soon this Sunday). See the link above.

Standard Disclaimer: It’s your money and your decision as to how to invest it.

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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 @SunAndStormInv (see link to upper right).

1 Response to Market Timing Brief for the Gold ETF (GLD) and 10 Year Treasury Yield (TNX) Closes On 5-02-2014: Gold Bounces Off Its Base on Declining Yields

bethjackson322 says:

May 6, 2014 at 5:53 pm

Very useful information.