Mint Ratio Signals Gold’s Moment of Truth

Dec 07 08:12 2017 Print This Article

Gold has finally broken 1260.00 long-term support in early Europe as the gold/silver (mint) ratio hits new highs suggesting a much more substantial down move could now occur.

GOLD

Gold attempted a comeback rally after Tuesday’s calamitous sell-off, but it was quickly snuffed out and failed ahead of 1270.00. Instead, the yellow metal ended the day with a whimper, closing near its lows at 1263.70 and appearing to be preparing itself for a severe test of critical long-term support. Gold traders will face a nervous end to the week as gold fails to rally even as the U.S. yield curve continues to flatten and ahead of crucial payroll data tomorrow evening.

With Asian shares solidly in the red and a general risk-off mood permeating the markets, it is significant that gold cannot find any support. The safe-haven bid that would typically appear in times such as these has disappeared from the market’s thoughts. It is yet another black market against the yellow metal.

Read More

About Article Author

Market Pulse

Established in 2006, MarketPulse is a free news site that provides full-time coverage of the world's largest financial markets, focusing on forex, commodities, and global indices research and analysis. Armed with a global team of securities analysts and strategists, Market Pulse provides timely, accurate, and informative research on major macroeconomic trends, technical analysis, and worldwide events that impact different asset classes and investors.

Related Items

Brazil’s election: What’s at stake?

Global investors are paying special attention to the forthcoming general election in Brazil, not only because the country is the world’s eighth-largest economy, ahead of Italy and Canada, but also because in these turbulent times for Emerging Markets (EMs), an unexpected or market-unfriendly outc ...

Live FX analysis – 18 September 2018 (Video)

Senior Market Analyst Craig Erlam discusses the key market themes from the summer – most notably US tariffs and Brexit – and the events to watch out for this week. Craig also gives his live analysis on EURUSD (17:48), GBPUSD (21:36), EURGBP (24:42), AUDUSD (25:44), USDCAD (28:33), GBPCAD (31:0 ...

Dollar Softens as Trade War Fatigue Sets In OANDA MarketBeat

OANDA Senior Market Analyst Alfonso Esparza reviews the major upcoming market news, macro analysis and economic indicator releases that will impact currencies, stocks other asset classes. Subscription available on iTunes https://goo.gl/TZEWRW and GooglePlay https://goo.gl/cRBk39. Tune in every Tu ...

USD/CAD – Canadian dollar steady despite new US tariffs on China

The Canadian dollar has posted small gains in the Tuesday session. Currently, USD/CAD is trading at 1.3003, down 0.12% on the day. On the release front, Canada releases Manufacturing Sales. There are no major releases in the U.S. On Wednesday, the U.S publishes building permits and housing starts. ...

Commodities Weekly: Copper nears 15-month low as fresh tariffs announced

The commodity space has generally struggled today amid escalations in the US-China trade war. US President Trump announced a 10% levy on Chinese imports from September 24, rising to 25% next year.  China has said it will decide today how to retaliate.   Base metals COPPER fell as much as 2.3% thi ...

Clues Pile Up For Expecting Another Rate Hike Next Week

The Federal Reserve remains on track for another round of tightening monetary policy at next week’s FOMC meeting, based on a several indicators. If the central bank announces another rate hike, it’ll mark the eighth increase since the Fed began squeezing policy post-recession in December 2015. ...

Global election preview

The next few months will be critical for several countries as they hold elections that could either significantly change their leadership or endorse the status quo. In this blog, I preview the choices ahead for Japan, Brazil and the U.S. Japan: Is a “new era” ahead? On September 20, there will ...