Dollar Takes over from Gold for now
Gold is increasingly moving in tandem with equity indices and against US dollar, so if you are for instance long gold, long EURUSD and long indices and all of a sudden indices drops then your account could be serious trouble.
Read More...Keeping the fundamental basis for assessing oil aside, let's look at both US crude oil and Brent oil. Using 200-day moving average extensions, we find that today's high in US crude oil of $119.48 stood 88% above its 200 DMA, well above the 79% during the 1990 GulfWar, when it peaked at $40. Meanwhile, Brent oil hit a high of $119.50, equivalent of 80% above its 200-DMA. This compares to the 92% > 200-DMA in 1990. Does this mean Brent will not retrace until it matches the 92% > 200-DMA? Considering Brent's 200-DMA of $64, adding to it 92% we get $123. Will oil rally stop when Brent hits $123?. It is possible. US officials insist on finishing off Iran's arsenal, while reports of intercepted missiles in the Guld region continue.
Read More...Here's a 120 min video on extensions of Crude oil metrics and the risks to gold. Watch here.
Read More...




