There are many notable trends developing out there, but few of these drives fail their fundamental litmus tests. One of the few exceptions to this rule is gold’s drive. The precious metal closed out a strong three-day rally Friday and subsequently put an exclamation point on its fourth consecutive weekly advance. Unlike the S&P 500, this isn’t a flimsy risk based move. Neither does this carry the same characteristics as the euro’s rebound which is catching traction despite its building troubles. Gold is taking advantage of its unusual safe haven property as an alternative to government manipulation which currencies have clearly suffered for. Furthermore, volume supports conviction which many other bullish performances (like with the S&P 500) cannot claim. The last time we had three days of 300,000-plus contract turnover was September.
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