26 January 2016

Gold Is In a 'Flight To Safety' - Cup and Handle?

Maybe not so much in the US where the people are still largely unaware of most global financial events and currencies, and certainly of the historical role of gold.

But the strong upward correlation of the US Dollar and Gold of late are evidence of a strong 'flight to safety' trade.

In a flight to safety the price of gold bullion would likely lead silver and the miners. If at some point silver can pick up the baton and run higher, then we might think a proper bottom has been set and a new bull leg could be forming.

Speaking of that, as I have noted previously, gold *might* be forming a rounded or cup and handle bottom.  I am watching it forming on the gold chart although I have not yet marked it explicitly.

We have not seen many chart formations come to fruition because of the relentless capping of the prices with synthetic gold.