Today I'm going to look at the gold market, largely because of an article I wrote with a friend. Here is a link. The data does not indicate inflation is an issue and so far won't be for the near future. However, that does not mean investors are not concerned about inflation prospects. As a result, keeping an eye on gold prices is a good idea.
Above is a 9 month chart. Notice a rally that started at the end of last year and continued until the beginning of March. That is when investors switched from other markets to equities -- meaning gold dropped. Prices then formed a downward sloping flag pattern but have since risen through the top of that pattern.
In the above chart, notice that gold is started another rally in mid-April and has been moving higher even since. Also note the price/SMA picture has slowly turned more bullish -- prices are above the SMAs, the shorter SMAs are above the longer SMAs and all the SMAs are now moving higher.
Also note the MACD is rising and
The RSI is moving higher as well. Also note the technical divergence circled on the chart. In April gold made two lows right around 85. But the RSI made a higher high on the second low. This is the kind of technical divergence that traders look for as it gives signals in advance of moves.
