Gold Shows its Safe Haven Colors

May 7, 2019 - 6:01pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action
On Sunday we sent out a trade alert to enter a long trade in gold. We entered this position at $1285 with a stop at $1268. Yesterday we sent out a trade alert to modify the stop to just below today's low at 1278.
Maintain long gold at $1285. Maintain the stop at $1278.
Gold Market Forecast

What is most noteworthy about today's action in gold was not the fractional gains, but rather the fact that gold moved higher against the tide of the other precious metals. While silver, platinum and palladium sustained drawdowns along with a plummeting US equities markets, gold managed to eke out a fractional gain on the day of about two dollars per ounce.

This indicates that silver platinum and palladium suffered losses related to their industrial component, and gold gained due to its safe haven 
allure. This is significant in that we have not seen gold act as a safe haven asset in quite some time and if US equities continued to trade under pressure we could see the safe haven aspect of gold ramp up considerably.

Sentiment Indicator:
Gold -> Bullish
Silver -> Neutral
S&P 500 -> Bearish
Bitcoin -> Bullish