When Gold Comes Back Into Favor?
Commodities / Gold and Silver 2015 Dec 21, 2015 - 05:44 PM GMTSasafuturestrading writes: Stocks usually change direction before commodities.
There is one market that really shines when stocks and the dollar are in bear markets together, and that market is gold.
In other words, a climate of falling stock prices, a falling U.S. dollar, and historically low interest rates don’t leave investors with a lot of investment alternatives. This is the exact type of intermarket climate that drives money to gold.
If gold is starting to rise, the first thing to do is to determine if the dollar is starting to drop. The next thing to do is to look at the separate charts of each market to determine the importance of their respective trend changes. A minor trend change is one may not justify a major trend change in the other. Their trend signals should be of similar magnitude.
When prices break the trendlines that have been in existence for several months or years, it is usually an indication that something important is happening.
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