Despite breaking the long-term trend line earlier this year, gold prices are still finding support at the 50 week EMA. But, momentum is still weakening and money flowing into the market is weak.
The gold ETF is trading at the 50% Fib level established from the rally of January 1 - Feb 29. A move below the 157.5 area would make the January 1 level the natural, short-term price target.
The equity markets are still in a constrained position. The IWMs and SPYs are trading in a range, (78-84 and 136-142.5, respectively), while the QQQs are below late February/early March levels. Most importantly, on all three charts we see declining momentum over the last few months, which is not positive going forward.
Despite the recent 50 BP rate cut, the Australian market is still trading in a pretty tight range. Prices have moved lower, finding support at the 10 day EMA, but momentum is pretty weak, and the volume indicators aren't showing much pop.
I'm on Linked In and Twitter (@captivelawyer). Silver Oz's Linked In name is @silver_oz. NDD is a fossil and may be reached by etching a picture in stone on the wall of a cave.
The Bonddad Economic History Project
At the beginning of 2012, I decided to start looking at the actual, statistical history of the US economy starting in 1950. The reason is simple: to find out what really happened. So, when you see title of a post that begins with a year such as 1957, followed by "employment" or "Fed policy: you know what it's for. You can also access the information by typing in BE for Bonddad econ and a year to find information on a particular year.
Here is a link to pages that contain links to all the posts on the years listed.