{"id":17277,"date":"2018-11-03T00:10:31","date_gmt":"2018-11-03T00:10:31","guid":{"rendered":"http:\/\/thepatientinvestor.com\/?p=17277"},"modified":"2018-11-03T00:10:31","modified_gmt":"2018-11-03T00:10:31","slug":"crude-reversal-undermines-gold-rally","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2018\/11\/03\/crude-reversal-undermines-gold-rally\/","title":{"rendered":"Crude reversal undermines Gold rally"},"content":{"rendered":"<p>Nymex crude broke support at $65, warning of a primary down-trend with a medium-term target of $56\/barrel.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-11-02-crude.png?w=525&#038;ssl=1\" alt=\"Nymex WTI Light Crude\" \/><\/p>\n<p>Crude and gold tend to rise and fall together, over the long-term, and falling crude prices warn of gold weakness.<\/p>\n<p>The bear rally in Gold is likely to meet stubborn resistance at $1250. Reversal below support at $1180 would offer a long-term target of the 2015 low at $1050\/ounce.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-11-02-gold.png?w=525&#038;ssl=1\" alt=\"Spot Gold in USD\" \/><\/p>\n<p>Another major influence on Gold prices is Dollar strength. A strong Dollar is synonymous with lower gold prices. The Dollar Index is trending upwards but ran into resistance at 96.50\/97.00.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-11-02-dxy.png?w=525&#038;ssl=1\" alt=\"Dollar Index\" \/><\/p>\n<p>The reason is not hard to find as China&#8217;s central bank (PBOC) stepped in to support the Yuan at 14.5 US cents (6.9 to $1), selling Dollar reserves.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-11-02-cny.png?w=525&#038;ssl=1\" alt=\"Chinese Yuan\" \/><\/p>\n<p>The Aussie Dollar also strengthened as a result.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-11-02-aud.png?w=525&#038;ssl=1\" alt=\"Australian Dollar\" \/><\/p>\n<p>Australian Gold stocks continue to find support because of the weak currency (AUD) but a declining Trend Index warns of long-term weakness. Breach of support at 4500 would signal a primary down-trend.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-11-02-xgd.png?w=525&#038;ssl=1\" alt=\"All Ords Gold Index\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nymex crude broke support at $65, warning of a primary down-trend with a medium-term target of $56\/barrel. Crude and gold tend to rise and fall together, over the long-term, and falling crude prices warn of gold weakness. The bear rally in Gold is likely to meet stubborn resistance at $1250. Reversal below support at $1180 &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2018\/11\/03\/crude-reversal-undermines-gold-rally\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Crude reversal undermines Gold rally&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[39,42,44,9,35],"tags":[166,292,1073,2529,3204,3731],"class_list":["post-17277","post","type-post","status-publish","format-standard","hentry","category-aussie-dollar","category-chinese-yuan","category-crude-oil-natural-gas","category-gold-precious-metals","category-us-dollar-index","tag-all-ordinaries-gold-index","tag-australian-dollar","tag-dollar-index","tag-nymex-wti-light-crude","tag-spot-gold","tag-yuan"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Crude reversal undermines Gold rally - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crude reversal undermines Gold rally - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Nymex crude broke support at $65, warning of a primary down-trend with a medium-term target of $56\/barrel. Crude and gold tend to rise and fall together, over the long-term, and falling crude prices warn of gold weakness. The bear rally in Gold is likely to meet stubborn resistance at $1250. 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He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters. Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis. Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008\/2009 and 2020 bear markets well ahead of actual events. He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.","sameAs":["https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/","https:\/\/www.instagram.com\/colin_thepatientinvestor","https:\/\/au.linkedin.com\/in\/colintwiggs"],"url":"https:\/\/thepatientinvestor.com\/index.php\/author\/investor\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9tQ4n-4uF","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":17348,"url":"https:\/\/thepatientinvestor.com\/index.php\/2018\/11\/09\/gold-crude-weaken-as-the-dollar-lifts\/","url_meta":{"origin":17277,"position":0},"title":"Gold &#038; Crude weaken as the Dollar lifts","author":"Colin Twiggs","date":"November 9, 2018","format":false,"excerpt":"Nymex Light Crude is testing support at $60\/barrel on the long-term rising trendline. Breach would confirm a primary down-trend with a long-term target of $45\/barrel. Crude and gold tend to rise and fall together. The long-term chart below compares gold and crude prices adjusted for inflation (CPI). The bear rally\u2026","rel":"","context":"In &quot;Crude Oil &amp; Natural Gas&quot;","block_context":{"text":"Crude Oil &amp; Natural Gas","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/crude-oil-natural-gas\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17243,"url":"https:\/\/thepatientinvestor.com\/index.php\/2018\/10\/27\/gold-rally-expected-to-falter-as-dollar-strengthens\/","url_meta":{"origin":17277,"position":1},"title":"Gold rally expected to falter as Dollar strengthens","author":"Colin Twiggs","date":"October 27, 2018","format":false,"excerpt":"China's Yuan continues to weaken while the Dollar index strengthens. Follow-through above 97 would signal another primary advance. A strengthening Dollar would weaken demand for Gold. The bear rally is likely to meet stubborn resistance at $1250. Reversal below support at $1180 would warn of a decline to the 2015\u2026","rel":"","context":"In &quot;Crude Oil &amp; Natural Gas&quot;","block_context":{"text":"Crude Oil &amp; Natural Gas","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/crude-oil-natural-gas\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10657,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/08\/21\/dollar-surges-as-crude-falls\/","url_meta":{"origin":17277,"position":2},"title":"Dollar surges as crude falls","author":"ColinTwiggs","date":"August 21, 2014","format":false,"excerpt":"Dollar surges Treasury yields rally, but the trend is down Crude oil prices fall Gold uncertainty continues Interest Rates and the Dollar The Dollar Index followed through above resistance at 81.50, signaling a long-term advance to test the 2013 highs at 84.50. Recovery of 13-week Twiggs Momentum above zero strengthens\u2026","rel":"","context":"In &quot;Crude Oil &amp; Natural Gas&quot;","block_context":{"text":"Crude Oil &amp; Natural Gas","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/crude-oil-natural-gas\/"},"img":{"alt_text":"Dollar Index","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-08-21-dxy.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-08-21-dxy.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-08-21-dxy.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":8133,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/07\/18\/crude-rallies-while-gold-and-commodities-stall\/","url_meta":{"origin":17277,"position":3},"title":"Crude rallies while gold and commodities stall","author":"ColinTwiggs","date":"July 18, 2013","format":false,"excerpt":"Gold is consolidating in a narrow range below resistance at $1300 -- a bullish sign. Upward breakout would penetrate the descending trendline, suggesting a bottom is forming.\u00a0 Reversal below $1270, however, would indicate another test of $1200. Failure of support at $1200 would offer a medium-term target of $1100*. *\u2026","rel":"","context":"In &quot;Commodities&quot;","block_context":{"text":"Commodities","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/commodities-gold-commodities\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":50484,"url":"https:\/\/thepatientinvestor.com\/index.php\/2024\/03\/28\/strong-liquidity-and-a-weak-yuan-boost-stocks-gold\/","url_meta":{"origin":17277,"position":4},"title":"Strong liquidity and a weak Yuan boost stocks &#038; Gold","author":"Colin Twiggs","date":"March 28, 2024","format":false,"excerpt":"The S&P 500 Equal-Weighted Index ($IQX) closed at a new record high above 6800. The advance signals that the current rally is finding broader support and is not as concentrated on the top 7 mega-cap technology stocks. Retracement on the Russell 2000 Small Caps ETF (IWM) respected support at 200,\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"S&P 500 Equal Weighted Index ($IQX)","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-03-28-iqx.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-03-28-iqx.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-03-28-iqx.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":8160,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/07\/24\/gold-rises-as-the-dollar-falls\/","url_meta":{"origin":17277,"position":5},"title":"Gold rises as the dollar falls","author":"ColinTwiggs","date":"July 24, 2013","format":false,"excerpt":"Gold broke resistance at $1300\/ounce, penetration of the descending trendline indicating that a bottom is forming. Reversal below $1300 would suggest another test of primary support at $1200. Respect of support at $1300 and breakout above $1350 is unlikely, but would target $1400. Dollar Index The Dollar Index is headed\u2026","rel":"","context":"In &quot;Commodities&quot;","block_context":{"text":"Commodities","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/commodities-gold-commodities\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/17277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=17277"}],"version-history":[{"count":1,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/17277\/revisions"}],"predecessor-version":[{"id":17278,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/17277\/revisions\/17278"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=17277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=17277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=17277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}