Gold price action hints of a brewing stock market crash
Gold has had a tumultuous year to say the least. The safe-haven metal soared above long-term resistance at $2000 per ounce briefly in March after Russia began its military occupation in Ukraine, then sank below long-term support at $1700 this week as the Fed toughened its approach to repressing the highest inflation experienced in over 40 years.
During the post-FOMC meeting press conference, Fed Chairman Jerome Powell warned consumers economic pain is on the horizon as the central bank focuses on bringing inflation down."Reducing inflation will likely require a sustained time of below trend growth," said Powell on Wednesday. Not only did the U.S. central bank raise rates by three-quarters of a percentage point for a third consecutive time on Wednesday, the British, Swiss, and Norwegian central banks all delivered large hikes on Thursday as well. In fact, central banks in the 10 big developed economies have raised rates by a combined 1,965 basis points in this cycle to date, with Japan the holdout "dove", sticking on Thursday with its decades-long, ultra-low rates policy that has destroyed its bond market.
The bullish case sees crisis-hedge gold buying creating a bottom in the Gold/S&P Ratio when the stock market peaked at an all-time high to begin 2022. The weekly chart also shows this ratio in the process of forming the right shoulder of an inverse head & shoulders bottoming pattern. After back-testing it's falling 200-day moving average in mid-August, which coincided with a downtrend line from the January peak, the world's most closely followed index has turned lower and is moving sharply towards the June low at 3636.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Where is gold headed next week? Vote now!(Kitco News) - Kitco aficionados, it is now time to have your say in where you think gold prices are heading in the short-term.
Read more »
Letter to the editor: Too much coverage of Queen’s passingAm I the only news-consumer troubled by this clear inequity involving news coverage?
Read more »
Meanwhile in Trumpland: Fox News, fake news and the search for neutralityAs CNN aims to be more ‘neutral’ there is one less critic of the strange American cable news universe
Read more »
Gold price bounces off $1,675, ignoring unchanged reading in U.S. weekly jobless claims.(Kitco News) - The gold market continues to hold critical long-term support levels even as the U.S. labor market remains healthier than expected with fewer workers applying for first-time unemployment benefits.
Read more »
Investors want to hold on to their gold as the pain from rate hikes is coming - SSGA's George Milling-StanleyKitco News talks with some of the most influential gold market analysts, economists, investors and mining CEOS to get their take on the industry and financial markets and the global economy
Read more »