Thomas
DeChastelain
Memorial Archives

Bullion Charts & Commentary
posted Jun 18, 2005 at 04:32AM

The Short Essential Version.

Bullion has been outperforming against almost every currency in the known universe. This includes the euro, the SA rand the swiss frank, the Japanese yen and yes the US dollar.

Despite a parabolic rise in the green-back, bullion has worked it's way back to test major triangle resistance.

With the dollar in an overbought condition on a weekly basis, and giving MACD sell signals on the daily, it is in excellent position to break through.

You could not script a better start to a major new bull phase for gold. Everything else is just white noise.

Bullion Daily



Gold COT numbers show there is lots of room to continue this thrust

Bullion Weekly




HUI Daily




Note: The MACD has put in a buy signal on the weekly chart.

USD Daily



A complete reverse situation from my posting on 4 Jan of this year.

Here the USD has yet to break down under any major support metrics. The gold market is saying that it will.

The week started with commercials at yet another new record high short position, but with open interest taking a header. Very bearish.

And now that the Euro is damaged goods in terms of longer term investment horizons, where will money go to on USD weakness? And remember that the Euro currency market deals in hundreds of billions of dollars... a day. The gold market is a lot smaller. It is akin to trying to shove Lake Superior through a garden hose.

Discussion

No change. The potential of this move simply makes it too expensive not to participate in.

Bullet Bullet Bullet