Thursday , 23 November 2017


Is Gold Still In A Downtrend? Yes – and No – Depending On How You Look At It

Is Gold still in a downtrend or has it actually broken its downtrend? Both as it turns out, but only if viewed fromgolden-dollar1 the proper perspective. Let me explain.

So says Tom McClellan (mcoscillator.com) in edited excerpts from his original article entitled Gold Breaks Downtrend, Sort Of.

[The following is presented by Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]

McClellan goes on to say in further edited excerpts:

The price plot of gold as priced in dollars is still below the declining tops line which dates back to late August 2013 but the same line drawn on the plot of gold priced in euros has already been broken.

Gold priced in euros

Such disagreement can appear in a few different forms, but the two I pay most attention to are (1) divergences, and (2) different trend line behavior.  It is the second category which is of interest now.

Gold prices have just started the process of building a pattern of higher highs and higher lows to define an uptrend but we already have a broken downtrend line on the plot of gold priced in euros.  A couple of other examples of trend lines on each plot are shown in this week’s chart, and you can see that in each  case, the euro price plot broke its downtrend line ahead of the equivalent line being broken on the dollar price.  Indeed, the leftmost example did not even see the dollar price break its trend line, although there was nevertheless a pop upward after the euro price broke its downtrend.

Conclusion

The short answer is that the euro price of gold has nearly always proven to be “right” when there is such a disagreement between the two plots so I expect that to be the case again this time.

[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]

*http://www.mcoscillator.com/learning_center/weekly_chart/gold_breaks_downtrend_sort_of1/ (Copyright © 1996-2013 McClellan Financial Publications. All Rights Reserved.)

Related Articles:

(The articles posted on munKNEE.com deliberately present a diverse perspective on subjects discussed. Below are links, with introductory paragraphs, to a variety of related articles designed to help you become truly informed regarding both sides of the issues so that you can assess the merits of all points of view and come to your own conclusion.)

1. These 10 Charts Suggest the Outlook for Gold Is Good for 2014 and Beyond

Leave a comment

Very poor sentiment towards gold and oversold conditions is reminiscent of the conditions seen in late 2008 and January 2009 [as seen in the chart below] when gold prices had fallen by more than 25% in 9 months. Subsequently, gold rose from a low on January 15, 2009 at $802.60/oz to a high less than 12 months later at $1,215/oz for a gain of over 50%. A similar move today would see gold above $1,800/oz by year end. Read More »

2. Gold & Silver to Plunge – Again – Then Move Up Dramatically Later in 2014

Leave a comment

Back in early May, 2013, I correctly forecast the lows in gold & silver which occurred 2 months later. Today, my new analyses of gold & silver indicates they both will show further weakness during the first quarter of 2014 before both jumping dramatically in price before the end of 2014. Below are the specific details of my forecasts (with charts) to help you reap substantial financial rewards should you wish to avail yourself of my insightful analyses. Read More »

3. Nick Barisheff: “Today’s the 2nd-Greatest Opportunity to Buy Gold Since 2002!”

3 Comments

Last year…saw gold’s greatest decline in 32 years…but I’m still confident that gold’s bullish fundamentals are still intact and that what I said in my recently published book, $10,000 Gold, still holds true. Here’s why. Read More »

4.  Noonan: Charts Suggest Lower Lows for Gold & Silver to Come in 2014

Because the natural laws of supply and demand do not apply to gold and silver, the only way we can track the influence of endless paper supply on the market is through the most reliable source, the market itself, and the best way to track the market is through charts.Let’s take a look at what they are conveying today. Read More »

5. Gold In 2014: Price Forecasts ($900 – $1,435) & Commentary

Below are a series of forecasts and predictions of what 2014 could bring for the price of gold (as low as $900/ozt. & no higher than $1,435/ozt.) and the reasons why with interesting commentary by some individual investors and gold enthusiasts. Read More »

6. Gold To Begin a Parabolic Rise In 2014 – Here’s Why

We are now starting the hyperinflationary phase in the USA and many other countries – and this will all start in 2014. What will be the trigger? The answer is simple – the fall of the U.S. dollar. Read More »

7. 12 Reasons Why Gold Should Bounce Sharply Higher in 2014

Is it time to throw in the towel? Is the bull market in precious metals really over? I don’t think so because my analyses suggest that nearly all of the fundamental factors that have been driving the gold price higher in the past decade have only strengthened in the past two years. Now that the correction has most likely run its course, I expect gold to rebound into the close of the year and bounce sharply higher in 2014. Here are the 12 reasons why. Read More »

8. Growth In National Debt Is 86% Correlated to the Price of Gold! Got Gold?

The correlation between the gold price, silver price and the debt growth has been amazingly accurate since 2001. Government spends too much money to perform a few essential services and to buy votes, wars, and welfare, and thereby increases its debt almost every year, while gold and silver prices, on average, match the increases in accumulated national debt. Read More »

 

One comment

  1. The Euro vs the US$ price only really matters if you are seeking to trade short term, otherwise buying when PM’s prices are low is always a smart move, for long term investing…