The Case for Safe Haven ActionThe current U.S Coincident-to-Lagging Indicator ratio is significantly below housing-crisis levels.
Safehaven
Gold Monthly Inverse Head and Shoulder XAU/USD
- On the look out for bullish exhaustion so prices can pullback for RHS
- Top of the monthly Bollinger band in line with 2015 January high $1307.5 - perhaps resistance there
- Another potential resistance stands at the 50 monthly MA which currently trades at $1343 - in line with long term downtrend line
- If this trade works out, look to sell in a blow-off top or strong daily reversal candle for the inverse RHS
Gold about to regain its lusterThis monthly chart of gold reveals something very interesting. Gold has had a bit of revival this year but the momentum seems to have stalled a bit. The beautiful reversal pattern in the chart though seems very bullish for gold. Sure, it may see a bit of down move to 1200 - 1150. But that would be a massive buying opportunity to ride till 1500 levels.
This also is an ominous sign for all risk assets. See my related post in the link below. Tread very carefully.
Gold vs S&P 500 Safe haven money flow continues to support gold. USD also getting weaker as Fed rate hikes are getting less certain, both supportive for some XAUUSD buys. I expect SPX500 to touch lower levels next week and xauusd to go higher.
