For the first time in 2016, the total return of the Dow Jones Industrial Average is above that of gold year-to-date (up 11.80%).
The convergence since the election of Donald Trump is almost unprecedented as gold dumps 16% (from Trump night highs) and Dow futures up 8.5% from Trump night lows.
A number of technicians have pointed at the two-year average price as support...
As Claudio Grass concluded earlier, while many market participants will keep looking for clues in FOMC statements, one’s investment decisions shouldn’t be based on questions such as “will the Fed hike rates next month” or “will there be a short term correction in the gold market” – that is simply superficial and ignores the major fundamental problems the system is facing. With so many question marks hanging over the global economy, we believe holding gold is of paramount importance. Gold stored in physical form outside the banking system is the only viable form of insurance in this dangerous market environment. Our case for gold is to consider the long haul. Whether or not there could be another gold market correction is not the issue. We believe gold’s secular bull market has by no means ended. There is probably still a long, long way to go.