Our last two weekly missives have highlighted Gold’s being technically “high” near-term, (yet fundamentally undervalued — understatement — in the broadest sense). And as the above panel shows, Gold remains higher than where ’twas at this time a year ago (1236), settling out the week on Friday at 1286 for a year-to-date gain of 11.6%.
One might consider such gain consider as “impressive”, given the stock market per the S&P 500 being but +4.9% so far this year; and anything but “impressive” is the corresponding year-to-date practically non-leveraged gain by the Gold miners as measured per the their exchange-traded fund GDX, +12.9%.
Then consider this is our 10th weekly missive since that from the week ending 12 July 2013 — almost four years ago — for which Gold has settled in the 1280s, and price’s vicissitudes aside, we ain’t gone nowhere rather than being way up there. C’est ça, mon frère, (the French election in the air).
Speaking of “nowhere”, for the first time in our memory, a pro-Gold investment bank colleague made not a single mention of the yellow metal this past week during a quarterly conference call to clients, which we then followed with an e-mail stating that Gold is “firm and stuck”. Which leads us to the following tri-panel graphic of the last 21 trading days (one month) for the metals.
To wit, over the past two weeks, Gold’s “Baby Blues” (left) stubbornly have refused to lose, whilst those for Sister Silver (center) are swiftly slipping, her being adorned in her industrial metal jacket (as opposed to her precious metal pinstripes) obviously in sympathy with skidding Cousin Copper (right):
Again, those blue dots measure the day-to-day consistency of a market’s 21-day linear regression trend, (the grey diagonal line in each of the above panels). And with Gold quite fragilely sitting atop its 1240-1280 resistance zone, should price not quickly get off the schneid and move to the upside, those Baby Blues will finally crack, and back into said resistance zone shall price be shown. Here ’tis between the purple lines across this year-over-year view of Gold’s weekly bars:
