Wednesday, December 2, 2009

Gold v. Currencies v. Gold Sentiment

Figure 1 is a weekly chart of gold (cash data) through last week's close. The indicator in the middle panel measures gold's 52 week performance relative to a basket of 8 currencies.Those currencies are: 1) Australian Dollar; 2) Canadian Dollar; 3) Swiss Franc; 4) Eurodollar; 5) British Pound; 6) Singaporean Dollar; 7) Japanese Yen; 8) US Dollar. Relative to these currencies, gold has been outperforming, and the indicator is making new all time highs versus this basket of currencies.

Figure 1. Gold v. Currencies v. Sentiment

The data in the lower panel comes from the Market Vane Corporation, which publishes the Bullish Consensus.The value is approaching but not at prior extremes. The current value is at 88%. Recent tops occurred with the value above 90%. From a sentiment perspective, extremes have yet to be realized.

1 comment:

D-man said...


I make a comment here (sorry Guy) related to an older post (Waiting for the "R" word); you mentioned CNBC; for now it's on Bloomberg and BofA (not the broad market)