Greece has once again "kicked the can down the road," but they may not be out of the woods yet according to the European Commission, European Central Bank and IMF, who have all warned Greece that action speaks louder than words.
That brings me to the point of today's blog posting, and that is action speaks louder than words. In our case, it is market action that speaks louder than Fed Chairwoman, Janet Yellen, or any other verbiage that comes out of a politician's mouth.
With that thought in mind, I'm going to take a look at the market action for all the major markets today, with a special look at gold (FOREX:XAUUSDO). I'll give you three reasons why you should be watching this market.
It would appear at the moment that many of the world’s disruptive events like Ukraine, Greece and the Middle East are all in a temporary recessionary mode at the moment. That leaves the markets themselves to determine their trends. Market action will always point the way to the next big moves as opposed to words and promises from world leaders.
Every success with MarketClub, Adam Hewison
The Gold Report: In a July research report, you wrote that the ongoing decline from the all-time high in the gold price may represent a correction of the last large up leg, which some say began in 2009 or mid-2008. Or it may represent a correction of the entire 1999 - 2011 advance in the gold price. Which is it? And has that correction run its course?
Tom Szabo: We are in a correction of the 20082011 rally and it is ongoing. Big picture, the gold price needs to drop below $1,155/ounce ($1,155/oz) and then subsequently below $1,067/oz before this would represent a correction of the entire gold cycle that goes back to 1999. We haven't seen such a decline at this point so we can't conclude that it's a larger correction.
Gold (FOREX:XAUUSDO) is having a summer revival. The price of gold touched $1,420 an ounce this week, a three-and-a-half month high, as escalating tensions in the Middle East, volatile currency markets and renewed demand for jewelry in China and India pushed prices higher.
Gold has surged 15 percent since sinking to $1,212 an ounce, its lowest level in almost three years, on June 27. A gain of 20 percent or more would put the metal back in a bull market.
Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.
Weekly Gold Report (March 4th through March 8th)
I don’t know about all of you, but if I never hear the term “sequester” for as long as I live, I will not complain!
As expected, the US Government did a fine job of hyping the event and waiting until the eleventh hour to make a decision. And as usual, no compromises were made and stock indexes barely flinched. In fact, most global markets seemed to be following scheduled news as if the “sequester” debate was not even an issue. Continue reading "Gold Chart of The Week"→