Gold To Continue Trading Inversely To Equity Markets

On the metals side, gold (NYSE:GLD) looks like it is in no mans land. If we look at the last three years in this asset class, we can see that gold has more or less formed intermediate bottoms in the middle and the end of each year. 2018 doesn’t look like it is going to be any different. Furthermore with the stock market more than likely bottoming yesterday, gold which traded down today looks like it will now continue down into an intermediate decline sometime next month or in June. Sentiment is just far too high in gold at the moment to consider a long position. Yes we still could take out the annual highs which would end up being the intermediate top but time is not on the side of gold at least in this cycle. We will only be interested in getting into the metals again when there is blood on the street. We just are not at that point yet.

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