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.
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