So, while a big move in gold should happen--and I am positioned for it--who knows when or even if it will occur. Gold shot up during the debt ceiling fiasco of August 2011, after which things have gotten palpably worse, yet here we are well below the 200-day moving average ($1680). There's no reason to be bullish in gold at least until we get back into the purple channel below, which now crosses the 144-day MA, at $1650. It's been strong resistance for months now.
Looking at my old silver chart, we see that the pink zone I once hoped would continue as support was resistance last week:
|This is not a pretty chart.|
The weekly chart looks capped: 6 straight weekly closes at the same price should raise the suspicions of anyone with a functioning cortex. On the bright side, though, in the 8 weeks after falling through the grey wedge, one could've expected much worse, and that's a potential sign that there's a nice floor (reflecting physical demand) being built at the not-too-shabby $28 level.
Back to gold, a similar floor might have been made at around the 21-month MA that I've been looking at for several months now.
|Gold is at an all-time high relative to the $CCI chart|
|Silver relative to $CCI looks to be ready to break out of a long-term wedge|
Weekly gold in euros spent a week outside the grey trend line, which really surprised me at the time, but the move wasn't confirmed, and it's been tracking it closely in the weeks since then:
|Finally, the "10-year yields paid in silver chart" which I continue to follow closely fell almost 4% this week.|