LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

COT Gold, Silver and US Dollar Index Report - August 23, 2019
By: GoldSeek.com

Gold Mid-Tiersí Q2í19 Fundamentals
By: Adam Hamilton, Zeal Research

Trump Floats Payroll & Capital Gains Tax Cues to Forestall Recession
By: Mike Gleason

Howís That Recession Coming, Dave?
By: David Haggith

Precious Metals Update Video: Jackson Hole Powell's Speech in focus today, Gold bias is up
By: Ira Epstein

Seven Key Words That Explain "Stupidly High" Prices
By: Daniel R. Amerman

Gold, Silver, Mining Stocks: Get Ready For A Huge Ride Higher
By: Dave Kranzler

On The Job Training
By: Ted Butler

Precious Metals Update Video: FOMC minutes: What's going on?
By: Ira Epstein

Economist Lays Out the Next Step to Wonderland for the Fed
By: Gary Tanashian

 
Search

GoldSeek Web

 
In Need of Financial Safety

By: Mary Anne Aden and Pamela Aden, The Aden Forecast

 -- Published: Sunday, 16 March 2014 | Print  | Disqus 

Gold is a safe haven

 

The emerging market turmoil in January got the safe haven ball rolling.  The slowing U.S. economy then added another boost, especially with Yellen keeping the same policies as Bernanke.

 

And now geopolitical concerns, like the crisis in Ukraine, are giving gold yet another safe haven push upward. 

 

Plus, with the U.S. dollar under pressure, while interest rates stay low, itís also bullish for gold.

 

Overall, physical demand and economic jitters are boosting the gold price.

 

The ever growing demand

 

Clearly, the world has plenty of uncertainty.  From Russia, Ukraine, Venezuela, emerging currency devaluations, the sluggish U.S economy, as well as the slowdown in China, the world has hot spots. 

 

With this backdrop itís easy to understand why demand continues to grow.  The world wants gold.

 

Today gold is in a C rise that began with the December lows.

 

So far goldís 15% rise looks good and gold is strong above $1300.  Gold could now easily rise further to test its August high near $1420.

 

In fact, if gold rises back up to its 23 month moving average and prior support, we could see the $1485 - $1536 level tested.

 

Keep in mind, a rise of this type would be a very good looking rise. But gold wonít really turn bullish until it can rise and stay above these levels.

 

Gold stronger than gold shares... but for long?

 

Gold has fallen less than gold shares.  Clearly, they are the volatile ones of the group. Gold shares tend to rise more, and fall more than gold does.

 

But comparing gold to gold shares, you can see on Chart 1 that the mega trend still favors gold.

 

 

In gold sharesí case, the ratio rose to an extreme high in 2013, favoring gold, because gold shares collapsed when gold fell. This is saying that gold shares are poised to continue outperforming gold until a more balanced situation evolves.

 

Chart 2A provides another angle.  Here you can see how much weaker gold shares have been compared to gold since the 2011 peak.  This weakness widened the most last year.  But as the ratio (B) shows, itís formed a downside wedge also suggesting that gold shares will continue to outperform gold this year, and possibly beyond.

 

Gold shares are up 33% on average since their mid-December lows, which suggests that a major shift in sentiment is taking place. Investors are starting to turn toward gold and gold shares.

We recommend buying and keeping both.

 

---

Mary Anne & Pamela Aden are well known analysts and editors of The Aden Forecast, a market newsletter named 2010 Letter of the Year by MarketWatch, which provides specific forecasts and recommendations on gold, stocks, interest rates and the other major markets. For more information, go to www.adenforecast.com


| Digg This Article
 -- Published: Sunday, 16 March 2014 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.