It looks like gold has some good technical indicators going for it. The MACD makes it seem like gold is starting a clear(er) move upward, and the blue bars show that the uptrend is in an infant phase. The ADX above the main chart shows another perspective ... a sharp decline on the far right (the red line) that is slowly tapering off. The overall strength of this trend is declinng - and I think that decline in strength is referencing the downward trend, as it's still more powerful than any uptrend in the making. The most interesting part of this is that eerily even 45 degree red -D line spanning the past month including today. This doesn't mean that Gold can't or won't correct further, as Gold is still trading below it's 50 day moving average. Cautious investors will likely be waiting for the price of Gold to cross the 50 day moving average for a sustainable period before jumping in.
Nonetheless, nothing has fundamentally changed in the economies of the world: Greece is still in trouble, the EU still doesn't have enough money to bail out its banking system, the US is still over 14 trillion dollars in debt (and growing), China is about to face a massive real estate bubble, and the precious metals are still being traded a heck of a lot like stocks. From what I'm seeing, both on this technical side, the state of world economies, and on the psychology of the market side, Gold and Silver are not being viewed as inflation hedges. The dollar is still king for now, but that could change - even in the next 6 months.
Nonetheless, nothing has fundamentally changed in the economies of the world: Greece is still in trouble, the EU still doesn't have enough money to bail out its banking system, the US is still over 14 trillion dollars in debt (and growing), China is about to face a massive real estate bubble, and the precious metals are still being traded a heck of a lot like stocks. From what I'm seeing, both on this technical side, the state of world economies, and on the psychology of the market side, Gold and Silver are not being viewed as inflation hedges. The dollar is still king for now, but that could change - even in the next 6 months.
