The Bottom Line
Technicals, fundamentals and seasonal influences point to another volatile week in equity markets around the world. Preferred strategy is to continue to hold sectors that benefit from favourable seasonal influences (gold, gold equities, biotech, fertilizers) and to continue to hold a “healthy” position in cash equivalents.
Gold gained $28.80 U.S. per ounce (1.80%) last week to another all time high, but slipped $8.80 yesterday. Short term momentum indicators are overbought, but have yet to show signs of peaking. Strength of gold equities and related ETFs turned negative relative to gold last week. However, the gold equity/gold ratio turned positive yesterday, a mildly encouraging sign.
Silver slipped $0.21 per ounce (0.52%) last week and eased another $0.58 yesterday. Short term momentum indicators are overbought, but have yet to show signs of peaking. Strength relative to gold is neutral, but is showing early signs of turning positive.
…. be sure to check out the other 48 Charts including Seasonal Charts Don posted this morning August 2nd HERE