These turbulence days are pushing investors back into gold.
The yellow metal’s climactic decline on August coincided with speculative peaks in stock (AMZN peaked on Sep 3). The surge on October 11 completed gold’s base breakout – and prices have been trending higher since. This week, gold renewed its upward push to new multi-month highs as equities weakened (see below).
A break of the $1,250 resistance will probably see a swift rally into the prior support, now resistance, at $1260-1280.
However, the leader of the precious metal sector thus far is Palladium, which overtook gold prices to achieve parity for the first time in years (see below). Prices remain in a firm uptrend and are pushing towards the major round number level at $1,300. However, its recent upleg is moving too far too fast. Trend acceleration is a sign that Palladium is vulnerable to a sharp correction.
We await an upward dynamic in Silver to break its downtrend decisively.
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Jackson has over 10 years experience as a financial analyst. Previously a director of Stockcube Research as head of Investors Intelligence providing market timing advice and research to some of the world largest institutions and hedge funds.
Expertise: Global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University.