The US stock market futures are poised to open down a little this morning, but bigger selling is happening elsewhere. As I write this the China stock market is down 3.7% today.
This is hurting gold as it’s been closely trading with the yuan now for over a year in a relationship no one dares to think about.
Gold is in a simple position.
Gold has support last week at $1,190, but real support on it is at $1,180 while resistance is in the $1,220 area.
A move through resistance would suggest a run up to the 150-day moving average while a close below $1,180 will trigger another leg lower.
The dollar is also going up today, because the Italian populists are pledging once again to bust their budget to cause the Euro to drop.
Last week we saw the start of what looks like a classic dip in the US stock market linked to the news of rising bond yields.
I don’t expect this drop to end today, but I do think this will set up a good opportunity for a buy trade, but personally, I’m interested in only trading the US stock market and looking outside of it for investment opportunities. I explained why in a post last week here titled Where Is The Best Place To Put Investment Money?
Yes, gold and mining stocks are a spot I want to put new investment money to work at. But when?
I talk about that in this video:
What Do The Charts Say Now About The Gold Stocks Trend? – Mike Swanson (10/08/2018)
