{"id":19508,"date":"2019-11-30T02:20:41","date_gmt":"2019-11-30T02:20:41","guid":{"rendered":"https:\/\/thepatientinvestor.com\/?p=19508"},"modified":"2019-11-30T02:20:41","modified_gmt":"2019-11-30T02:20:41","slug":"gold-kill-the-chicken-to-scare-the-monkey","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2019\/11\/30\/gold-kill-the-chicken-to-scare-the-monkey\/","title":{"rendered":"Gold: Kill the chicken to scare the monkey"},"content":{"rendered":"<p>10-Year Treasury yields retreated from resistance at 2.0%, helped by increased Chinese purchases.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2019-11-29-tnx.png?w=525&#038;ssl=1\" alt=\"10-Year Treasury Yields\" \/><\/p>\n<p>Evidenced by the Yuan falling against the US Dollar. Breach of recent support 14.15 would warn of another test of primary support at 14 cents.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2019-11-29-cny.png?w=525&#038;ssl=1\" alt=\"Chinese Yuan CNY\/USD\" \/><\/p>\n<p>Further Yuan weakness and lower Treasury yields are likely after President Trump signed the Hong Kong Human Rights &amp; Democracy Act into law. This puts China in a difficult position. China\u2019s foreign ministry:<\/p>\n<blockquote><p>\u201cWe urge the United States not to continue going down the wrong path, or China will take countermeasures and the U.S. must bear all the consequences.\u201d<\/p><\/blockquote>\n<p>Their economy is hemorrhaging and they badly want an interim trade deal but failure to respond to the latest US action would reveal a weak hand. Expect an indirect response as in the popular idiom &#8211; <em>kill the chicken to scare the monkey &#8211; <\/em>making an example of someone in the hope that it will deter others.<\/p>\n<p>Gold continues to test support at $1450 but lower Treasury yields (from a weaker Yuan) would strengthen demand as it lowers the opportunity cost of holding Gold. Breach of support is unlikely unless Treasury yields again test resistance at 2.0%.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2019-11-29-gold.png?w=525&#038;ssl=1\" alt=\"Gold (USD\/ounce)\" \/><\/p>\n<p>Silver is similarly testing support at $16.80\/ounce but we are unlikely to see a follow-through unless Treasury yields strengthen.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2019-11-29-silver.png?w=525&#038;ssl=1\" alt=\"Silver (USD\/ounce)\" \/><\/p>\n<p>Australia&#8217;s All Ordinaries Gold Index continues in a downward trend channel. An up-tick in the Trend index and short-term support at 6500 suggest a rally to test the upper trend channel, around 7000. Breakout from the trend channel, while still unlikely, would warn that a bottom is forming. Breach of support at 6500 is more likely and would offer a short-term target of 6000.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2019-11-29-xgd2.png?w=525&#038;ssl=1\" alt=\"All Ordinaries Gold Index\" \/><\/p>\n<h3>Patience<\/h3>\n<p>Gold remains in a long-term up-trend. The current correction may offer an attractive entry point but we first need to confirm that the up-trend is intact.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>10-Year Treasury yields retreated from resistance at 2.0%, helped by increased Chinese purchases. Evidenced by the Yuan falling against the US Dollar. Breach of recent support 14.15 would warn of another test of primary support at 14 cents. Further Yuan weakness and lower Treasury yields are likely after President Trump signed the Hong Kong Human &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2019\/11\/30\/gold-kill-the-chicken-to-scare-the-monkey\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Gold: Kill the chicken to scare the monkey&#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":[40,31,42,9,57],"tags":[70,166,678,3204,3206],"class_list":["post-19508","post","type-post","status-publish","format-standard","hentry","category-australia-nz-countries-regions","category-the-fed-banks-interest-rates","category-chinese-yuan","category-gold-precious-metals","category-stock-markets","tag-10-year-treasury-yields","tag-all-ordinaries-gold-index","tag-chinese-yuan","tag-spot-gold","tag-spot-silver"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Gold: Kill the chicken to scare the monkey - 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=\"Gold: Kill the chicken to scare the monkey - the patient investor\" \/>\n<meta property=\"og:description\" content=\"10-Year Treasury yields retreated from resistance at 2.0%, helped by increased Chinese purchases. Evidenced by the Yuan falling against the US Dollar. Breach of recent support 14.15 would warn of another test of primary support at 14 cents. Further Yuan weakness and lower Treasury yields are likely after President Trump signed the Hong Kong Human &hellip; Continue reading &quot;Gold: Kill the chicken to scare the monkey&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2019\/11\/30\/gold-kill-the-chicken-to-scare-the-monkey\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:author\" content=\"https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-11-30T02:20:41+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/static.incrediblecharts.com\/images\/2018\/2019-11-29-tnx.png\" \/>\n<meta name=\"author\" content=\"Colin Twiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Colin Twiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/11\\\/30\\\/gold-kill-the-chicken-to-scare-the-monkey\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/11\\\/30\\\/gold-kill-the-chicken-to-scare-the-monkey\\\/\"},\"author\":{\"name\":\"Colin Twiggs\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#\\\/schema\\\/person\\\/d42b18d516a80149d739845749ac6454\"},\"headline\":\"Gold: Kill the chicken to scare the monkey\",\"datePublished\":\"2019-11-30T02:20:41+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/11\\\/30\\\/gold-kill-the-chicken-to-scare-the-monkey\\\/\"},\"wordCount\":305,\"publisher\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/11\\\/30\\\/gold-kill-the-chicken-to-scare-the-monkey\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.incrediblecharts.com\\\/images\\\/2018\\\/2019-11-29-tnx.png\",\"keywords\":[\"10-Year Treasury Yields\",\"All Ordinaries Gold Index\",\"Chinese Yuan\",\"Spot Gold\",\"Spot Silver\"],\"articleSection\":[\"Australia &amp; NZ\",\"Banks &amp; Interest Rates\",\"Chinese Yuan\",\"Gold &amp; Precious Metals\",\"Stock Markets\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/11\\\/30\\\/gold-kill-the-chicken-to-scare-the-monkey\\\/\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/11\\\/30\\\/gold-kill-the-chicken-to-scare-the-monkey\\\/\",\"name\":\"Gold: Kill the chicken to scare the monkey - the patient investor\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/11\\\/30\\\/gold-kill-the-chicken-to-scare-the-monkey\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/11\\\/30\\\/gold-kill-the-chicken-to-scare-the-monkey\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.incrediblecharts.com\\\/images\\\/2018\\\/2019-11-29-tnx.png\",\"datePublished\":\"2019-11-30T02:20:41+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/11\\\/30\\\/gold-kill-the-chicken-to-scare-the-monkey\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/11\\\/30\\\/gold-kill-the-chicken-to-scare-the-monkey\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/11\\\/30\\\/gold-kill-the-chicken-to-scare-the-monkey\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.incrediblecharts.com\\\/images\\\/2018\\\/2019-11-29-tnx.png\",\"contentUrl\":\"https:\\\/\\\/www.incrediblecharts.com\\\/images\\\/2018\\\/2019-11-29-tnx.png\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/11\\\/30\\\/gold-kill-the-chicken-to-scare-the-monkey\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/thepatientinvestor.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Gold: Kill the chicken to scare the monkey\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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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. 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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-54E","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":14218,"url":"https:\/\/thepatientinvestor.com\/index.php\/2016\/09\/24\/gold-respects-support\/","url_meta":{"origin":19508,"position":0},"title":"Gold respects support","author":"ColinTwiggs","date":"September 24, 2016","format":false,"excerpt":"10-Year Treasury yields are retracing to test the recent support level at 1.60 percent but the trend remains upward. The Chinese Yuan is easing against the US Dollar, with USDCNY in a gradual up-trend as the PBOC manages the decline in order to conserve foreign reserves. This is likely to\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":"","src":"","width":0,"height":0},"classes":[]},{"id":19478,"url":"https:\/\/thepatientinvestor.com\/index.php\/2019\/11\/22\/gold-treasuries-and-chinas-yuan\/","url_meta":{"origin":19508,"position":1},"title":"Gold, Treasuries and China&#8217;s Yuan","author":"Colin Twiggs","date":"November 22, 2019","format":false,"excerpt":"China's Yuan retreated against the Dollar, encountering resistance at 14.35 US cents as the seemingly endless trade talks hit another rough patch. Breach of recent support 14.15 would warn of another test of primary support at 14 cents. Chinese purchases have weakened 10-Year Treasury yields in the last two weeks.\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":"","src":"","width":0,"height":0},"classes":[]},{"id":24908,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/03\/31\/gold-and-the-treasury-yield\/","url_meta":{"origin":19508,"position":2},"title":"Gold and the Treasury yield","author":"Colin Twiggs","date":"March 31, 2021","format":false,"excerpt":"Spot Gold is testing support at $1670\/ounce on the daily chart. Gold and the PIMCO 15+ Year US TIPS ETF (LTPZ) usually track fairly closely but diverged in July\/August 2020 when Gold broke $2000\/ounce. Since then the gap has narrowed but warns that Gold may still fall further if real\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":"","src":"","width":0,"height":0},"classes":[]},{"id":14859,"url":"https:\/\/thepatientinvestor.com\/index.php\/2017\/02\/24\/gold-breaks-through-1250\/","url_meta":{"origin":19508,"position":3},"title":"Gold breaks through $1250","author":"ColinTwiggs","date":"February 24, 2017","format":false,"excerpt":"10-Year Treasury Yields are testing support at 2.30%. Expect this to hold. Breach of the rising trendline would warn of a correction but this seems unlikely with the Fed intent on normalizing interest rates. Breakout above 2.50% would offer a target of 3.0%. The Dollar Index rally remains muted since\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":19570,"url":"https:\/\/thepatientinvestor.com\/index.php\/2019\/12\/14\/trade-deal-bearish-for-gold\/","url_meta":{"origin":19508,"position":4},"title":"Trade deal bearish for Gold","author":"Colin Twiggs","date":"December 14, 2019","format":false,"excerpt":"Donald Trump is talking up the prospects of a trade deal, while China remains non-commital, but experience has taught us to judge the two parties more by their actions than the rhetoric. The Chinese Yuan is strengthening against the US Dollar, testing resistance at 14.35 US cents. A strengthening Yuan\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":"","src":"","width":0,"height":0},"classes":[]},{"id":19604,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/01\/11\/gold-bearish-on-imminent-phase-1-deal\/","url_meta":{"origin":19508,"position":5},"title":"Gold bearish on imminent phase 1 deal","author":"Colin Twiggs","date":"January 11, 2020","format":false,"excerpt":"The U.S. and China are finalizing a bevy of long-running corporate deals ahead of a high-profile ceremony to sign a trade deal next week that the world\u2019s largest economies seek to cast as a major breakthrough and a marked warming in the relationship. Along with a Chinese delegation led by\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":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/19508","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=19508"}],"version-history":[{"count":1,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/19508\/revisions"}],"predecessor-version":[{"id":19509,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/19508\/revisions\/19509"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=19508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=19508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=19508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}