During this past week ending May 31st, 2019, oil sold off sharply, closing the week down almost $6 to $53.37, while gold rallied to close the week at $1305.50. I like to monitor the price of oil in gold terms, and to do that I use 100 barrels of oil as the numerator and the price of one ounce of gold as the denominator.
This ratio has been in a downtrend channel for a decade, with a countertrend move beginning in 2016 and failing recently during the oil sell-off last fall, which led to the breakdown of the blue channel. Oil has since tried to retest that support line through the first part of this year, but failed the retest last week. This failure is bearish, meaning that it indicates a lower ratio going forward, which should be strong for gold and weak for oil.
Following weeks of low volatility, where the CBOE Gold Volatility Index fell to a decade low of 8.75, gold rallied $15 per ounce today to close at $1284. Simultaneously, the US dollar broke above heavy resistance (briefly) at 98. As the dollar goes, so go the metals.
Gold has been forming a long, rounded bottom since 2013, and the chart looks constructive. The bull case for gold technically is that the price has remained above the 200 day moving average for the entirety of 2019, and the 200 DMA is now turning up. Gold also pushed into overbought territory on the Relative Strength Index (RSI) earlier this year, and as not oversold, which indicates that gold still has positive momentum. (more…)
Written by Border Gold Aug 20, 2018
The gold market is seeing a bit of a bounce in early action Monday to kick off the new trading week. Trading volumes remain subdued, however, as many investors wrap up late summer vacations. (more…)
Written by Border Gold Aug 7, 2018
The gold market continues to see selling pressure as the market searches for a bottom. Although the big, round $1200 per-ounce level is not far off, the market may need to do more work on the downside before it is able to build a long-term base. Low summer trading volumes and scant risk aversion are not doing the market any favors. (more…)
Written by Border Gold July 30, 2018
The bears have maintained a tight grip on the gold market, and prices continue to struggle to make any type of reversal to the upside. Higher stocks, a strong appetite for risk, a rising dollar and higher bond yields have all likely taken a toll on the yellow metal. That being said, the near-term does not seem to provide much reason to be bullish. (more…)
Written by Border Gold July 24, 2018
Just how low might prices go? That is likely the very question on the minds of gold investors right now. (more…)
Texas Precious Metals Depository announces the addition of New Direction IRA – a provider of self-directed IRAs, 401(k)s, health savings accounts (HSAs), and other such tax-advantaged savings vehicles – as a preferred custodian for self-directed IRA services at its new storage facility. In conjunction with New Direction, Texas Precious Metals Depository (TPMD) will complement the retail services provided by Texas Precious Metals to meet the needs of precious metals IRA investors. (more…)
Written by Border Gold July 17, 2018
The tough times for gold have continued as prices seem to be languishing around a 12-month low. (more…)
Written by Border Gold July 5, 2018
Markets appear headed for some more volatility this week as fears over global trade take a toll on sentiment. (more…)
Written by Border Gold June 26, 2018
Risk aversion seems to be the predominant theme as the new trading week gets off to a poor start. (more…)
Written by Olivier Garret June 21, 2018
The World Gold Council recently released an insightful report titled, Gold 2048: The Next 30 Years for Gold. This report looks at overarching demographic, technological, economic, political, and social trends around the world and their implications for the gold market. (more…)
Introducing The Texas Precious Metals Depository.
Texas Precious Metals Depository is a state-of-the-art underground private storage facility for gold, silver, platinum and palladium (more…)
