Comex Gold Futures rose dramatically

Comex Gold Futures rose dramatically. Risk aversion won over fear of deflation. Gold futures opened at the low $782.90 and closed at the high, $846.60, one of the biggest one-day bars we have ever seen. It broke the downsloping channel and is thus a “trading breakout.” It’s also over the green 200-day moving average.

We hope it’s a flash in the pan but a breakout must always be respected. We say “hope” because a continued out-of-control rise in gold means loss of faith in the global financial and political system.

Conversely, if liquidity (trust) rises again and risk appetite returns, that implies flows into equities, and that raises the question of who has the most undervalued market?

It might be the US.

Bye for Now

Barbara Rockefeller