Tuesday, August 29, 2017

Technicals for both gold and bonds show prices going higher as investors look for safe havens out of stocks

As gold blew through its hard resistance level of $1300 yesterday, technical analysts are now seeing the potential for even higher prices in the precious metal due to a divergence of two ETF trackers that have either surpassed or are touching their own resistance levels.

Many analysts look at the GLD ETF rather than the physical gold markets when determining trends in the gold space.  And likewise these same analysts like to track the TLT for long-term trends in the bond markets, and interestingly these two had been running almost parallel for the past 12 months until just recently.

Gold climbed back above $1,300 on Monday, and Todd Gordon says that thanks to technicals in both gold and the bond market, the yellow metal will continue its stellar year-to-date surge. 
"We're seeing a pretty impressive test of the recent range highs, and I think that based on what the macro situation looks like, gold should push higher," he said Monday on CNBC's"Trading Nation." 
The TradingAnalysis.com founder is looking specifically at a chart of the gold-tracking ETF GLD, and the ETF that tracks long-term bonds (TLT). While both have traded seemingly "in a fairly tight correlation" this year, GLD's 8 percent rally since the beginning of July has it outpacing TLT, creating a bigger divergence in both. - CNBC

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