Gold's Message

By: Mike Shedlock | Mon, Feb 29, 2016
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Steen Jakobsen, Saxo Bank CIO and chief economist, emailed a chart of gold last week with his comments on what the chart means. I meant to comment on his comments at the time, but will do so now.


Gold Trendline

5-Year Gold Chart
(Editor's Note: Chart updated)

Gold has broken neckline of downtrend for the first time years. What is it telling us?

I pinged Pater Tenebrarum at the Acting Man blog with Steen's comments. Tenebrarum responded with thoughts the same as mine.

"The main message is that economic confidence and confidence in policy makers are faltering. The precise consequences (price inflation, ever crazier policies, cross-currency rates) are actually a side show."

 


 

Mike Shedlock

Author: Mike Shedlock

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Mike Shedlock

Michael "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Visit http://www.sitkapacific.com/ to learn more about wealth management for investors seeking strong performance with low volatility.

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