Excerpted from the June 12 edition of Notes From the Rabbit Hole (NFTRH140):
Nominal Gold & Gold vs. Currency
Despite the pervasive bearishness in broad markets as well as the gold sector, gold remains too far above its weekly EMA 30. It is due for a correction, all the way down to the low to mid 1400's (written sarcastically). This would be in keeping with the lovely and orderly MACD consolidation highlighted in yellow.
Gold in various currencies is in various shades of bullish. That is because we are, in slow motion, watching these paper promises fail to store any value whatsoever as governments routinely do to their paper whatever is needed for political expediency. Governments keep telling their citizens that they care about and support their respective currencies as a way of maintaining confidence, diminishing though it is. Gold is the only commonly accepted monetary refuge from the ongoing abuse of the various debt notes of the world.
Gold vs. Commodities & Stock Market
Above is of course, a variation of our most important chart for the gold mining fundamental case. Gold-CCI maintains a break above resistance (now support), and gold has broken trend lines in oil, industrial metals and the S&P 500. In fact, the weekly AROON oscillator (not shown) has gone positive on gold in relation to all markets noted above except crude oil. Gold is now in a weekly uptrend vs. commodities, therefore, gold mining fundamentals are in an uptrend.
