Gold’s change for the week just past? A zip-zero-nada bona fide nothing burger. Well, it did sport a net gain for the week of 30¢ having settled the prior Friday at 1323.7 and now yesterday at 1324.0. En route, price made both a “higher-low”, but also a “lower-high”, referred to by traders as an “inside week”. Fairly riveting stuff, one has to say. Best have a bowl of soup and a nap.
From soup to nuggets
Despite Gold’s sleepy week, there is some encouraging news on the technical front. Recall this from a week ago? “
Gold’s study of ‘weekly moneyflow’ … has now dipped below the red horizontal line (at 50 on a scale of 100-to-0) … only the sixth such downside crossing since September 2014: in all five of those prior downside crossings, price then traveled further south by at least 32 points”.
Now updating the picture, rather than succumb to that study, Gold’s price remained sufficiently resilient during the week to instead turn the moneyflow line back up above the 50 level as depicted here by the green arrow:
To be sure, the skeptical technician might merely see this as noise. However, our “more to the story” view is: just as it was “cool” to dump Gold on the downside, now it is “dumb” not to buy the dips given the ever-increasing 3-Ds, i.e. Debasement, Debt, Derivatives.
Further, per Gold’s weekly bars next shown in the year-over-year view, the trend remains our friend, be it both the upward tilt of the dashed linear regression line and the still ascending parabolic blue dots. The rightmost bar depicts its having been the aforementioned “inside week”. And yet above it all lies the Base Camp 1377 prize, from which we’ll see the buyers banging down the door to get aboard. Good to be well-rested — indeed positioned– ahead of that inevitable event:
As for Gold’s sleepy week, with respect to the primary BEGOS Markets: the Bond netted a change of only -0.1%, the Euro -0.2%, Gold as shown 0.0%, Oil moved a typical amount of +1.1%, but the S&P 500 came in +3.5%. Oh, the “never say die” stock market. On a closing basis, from its -10.2% fall, the S&P now at 2787 is but -3.0% below that all-time high of 2873 posted on 26 January.