For the second week in a row, gold prices rose, albeit a small 0.2%. This came in the face of the Japanese meltdown that spilled over into North American markets.
Last-minute position squaring and rebuilding before the release of July CPI and PPI numbers can result in sharp two-way price moves in gold, silver, and copper.
FinMedia & Herd & Fed are all behind the curve. To be sure, the whole FinMedia & Herd insanity emphasizes the parroting that passes sadly for “informative news.”
Valuations remain deep into dangerous bubble territory, which portends a looming bear market to maul prices back down in line with earnings. Extreme valuations will likely head higher until that bear really roars.
While many point to the bad jobs data, we have to at least be honest in recognizing that the market began this decline well before those poor jobs numbers were announced.
The gold market is back up into what's defined as a bull trend: higher highs and higher lows. Now the key to the uptrend is the 18-day average of closes.
There can be blips of one-way price moves followed by large period of consolidation. Patience plus higher trailing stop loss is needed for the next thirty days.
