metalsmtl
01-19-2012, 10:05 AM
Gold hit the $1,670 resistance level in overnight trading and finds itself nicely stuck in the middle of the range this morning. Euphoria continues as the two worst indexes in 2011 are so far the best performing in 2012: the financials and home builders. Confirmation that we have turned the corner will need to come from the bond market. Interest rate yields must begin to rise for confirmation. If not, it indicates lack of confirmation in the equity markets. I still believe this is a short term trade in the equities. The economic realities still portend a recession in Europe this year, which should impact earnings.
The metals are treading water. They should be moving higher if the trend from last year is still in place, where the metals move in tandem with the equity markets. If they have de-coupled, the short term may be a difficult period for gold to outperform. The industrial metals should close the gap with gold on a ratio basis.
Note: An industry colleague of mine is seeking user feedback for an exciting new web application he is developing. The app allows users to track the performance of their precious metals. A free demo is available here: https://www.bulliontracking.com/en/try/
Candid feedback is welcome!
The metals are treading water. They should be moving higher if the trend from last year is still in place, where the metals move in tandem with the equity markets. If they have de-coupled, the short term may be a difficult period for gold to outperform. The industrial metals should close the gap with gold on a ratio basis.
Note: An industry colleague of mine is seeking user feedback for an exciting new web application he is developing. The app allows users to track the performance of their precious metals. A free demo is available here: https://www.bulliontracking.com/en/try/
Candid feedback is welcome!