False breakout - Wait for buying opportunities.
So everyone was waiting for the breakout and it happened. However the problem for me was glaring - it broke in the wrong direction!
US 10 year treasuries sold off, Stock markets hit all time highs, gold should have broken down not up, therefore it made no sense.
However, the fact that gold is still holding on to 1490 when stock markets have now breached all time highs shows there is great desire to buy.
So right now were still in no mans land. Look to buy gold when treasuries show signs they are starting to get bought again when US 10 year yields come down to 1.7 or 1.6%, and stock markets in tandem come down. If the stock markets keep going to new highs, gold will be pushed down.
If stock markets keep pushing all time highs, then the market turns and sells off, thats the cue to buy gold.
US 10 year treasuries sold off, Stock markets hit all time highs, gold should have broken down not up, therefore it made no sense.
However, the fact that gold is still holding on to 1490 when stock markets have now breached all time highs shows there is great desire to buy.
So right now were still in no mans land. Look to buy gold when treasuries show signs they are starting to get bought again when US 10 year yields come down to 1.7 or 1.6%, and stock markets in tandem come down. If the stock markets keep going to new highs, gold will be pushed down.
If stock markets keep pushing all time highs, then the market turns and sells off, thats the cue to buy gold.