One Big, Potential Catalyst for Gold in 2018

Jan 12 21:01 2018 Print This Article

 

 

 

 

The rebound in the precious metals sector continues. Friday, Gold pushed to another new high, near $1340/oz. Gold stocks led by the HUI Gold Bugs Index and GDX also made a new high with juniors and Silver right behind. The greatest traders say the move comes first and then the reason later. When it comes to Gold we are always analyzing the reason behind the moves so we can distinguish between reactions and reflex moves and those moves that are part of a real bull market. The market may be starting to sniff out a potential big catalyst for Gold that could drive its breakout in 2018.

With respect to Gold and Bonds an important change has taken place in recent months. The two asset classes had been positively correlated. When rates declined, Gold moved higher. When rates rebounded, Gold struggled. That is what happens when inflation is low and not trending. However, now we see long-term Bonds (specifically the 10-year Bond) moving towards a breakdown while Gold is not far from a breakout. Look at the rolling 50-day and 200-day correlations at the bottom of the chart. 

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About Article Author

Daily Gold

Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection for precious metals investors. The Daily Gold was recently anmed one of the top 50 Investment Blogs by DailyReckoning and WalletHub

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