Gold Danger Zone – Price Decline

As the days and weeks continue to pass, gold is struggling to show us anything close to the strength seen during the 2016 rally.  And the more gold continues to perform in a lackluster manner, the more I begin to consider that 2016 strength as a bear market counter-rally.  If that were true, it would mean the action since the 2016 top is a continuation of the bear market that started in 2011! Of course, gold has yet to fail in such a fashion, so there is still enough evidence to support the bear market ended over a year ago.  And if the equity markets are near the top of an eight year bull market, then we could expect gold to outperform (inversely correlated) in the coming years.  With the equity markets at fairly extreme levels, forecasting longer term, across varying asset classes, is difficult to do.  Therefore, for the time being it is best we appreciate just how difficult and extreme the current landscape, rather than trying to force any one specific viewpoint dogmatically.

First published here: Gold Danger Zone – Price Decline