035/18 The Midas Touch Gold Model™ – Update 14th of May 2018

The Midas Touch Gold Model™ is back to neutral!

The Midas Touch Gold Model™ as of May 14th, 2018

The Midas Touch Gold Model™ as of May 14th, 2018

As gold was able to bounce off the strong support around 1,300 USD, the Midas Touch Gold Model™ shifted back to a neutral reading on May 10th. Unfortunately, the model had just turned bearish the week before. Such a bear trap can sometimes happen, especially as the model includes many trend following signals.

Interestingly enough, it was gold in Chinese yuan that was the first one to post a bullish reversal on May 9th. It was followed by new bullish signals from the GDX daily chart and another day later by gold in US-Dollar as well as Indian rupee. On Friday the US-Dollar itself issued a sell signal, which translates into a bullish signal for gold of course. Another new green light comes from the US real interest rate. With the lastest CPI numbers now at 2.45%, the real interest rate for the US is moving back into negative territory! Falling real interest rates are usually a strong driver for gold!

The only bearish changes comes from the SPDR Gold ETF (GLD). During last week 6.49t of gold have left its inventory.

All together the Midas Touch Gold Model™ is back to a neutral conclusion. Judging from the slow and unmotivated move that gold is currently showing I guess the sideways consolidation between 1,300 and 1,365 USD might continue for some more weeks. As well I still believe gold needs one final dip below 1,300 USD before a new up-leg can start. Especially the CoT numbers and seasonality are still signaling that gold is not yet ready to move higher.

By | 2018-05-29T22:36:54+00:00 May 14th, 2018|Tags: , , |0 Comments

About the Author:

Florian Grummes is an independent financial analyst, advisor, consultant, trader & investor as well as an international speaker with more than 20 years of experience in financial markets. He is specialized in precious metals, cryptocurrencies and technical analysis. He writes a bi-weekly in-depth gold and silver analysis for one of Germany´s largest gold and silver retailer the „pro aurum“ group. As well he is publishing a bi-weekly comprehensive gold & bitcoin analysis for his numerous international readers. He is well known for combining technical, fundamental and sentiment analysis into one accurate conclusion about the gold market.

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