Don’t Buy Gold in Yen or Any Other Currency Yet
- Posted by Greg Harmon
- on January 8th, 2013
I heard a well known television commodity analyst say that he liked Gold yesterday but only in Yen terms. I have heard this type of analysis before so it did not surprise me. And part of the explanation, that Gold in Dollar terms is in a downtrend makes sense. But taking a look at Gold priced in other currencies including the Japanese Yen I would find it hard to say that I like Gold in terms of any currency. If you made me buy Gold with your money then perhaps the least sucky currency to use would be Yen but it still looks like you are better off keeping that money somewhere else. Take a look at the chart of Gold priced in Yen below. It is pulling back from a triple top at 1.45
confirming a Shooting Star reversal candle from last week lower. It may turn around and break through that triple top but for now it is pulling back. The time to buy Gold in Yen terns was in July when it was moving higher off of the 100 week Simple Moving Average (SMA). The time will come again if the pull back holds at the 20 week SMA (the middle of the Bollinger bands), or if it breaks and closes above that 1.45 level. But until then look somewhere else.
Join the Dragonfly Capital Views Premium Membership
Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Resistance is not a brick wall
- Yahoo! Stock of the Year 2015, I mean 2016?
- Premium Earnings 6-30-15
- Premium Earnings 6-29-15
- Top Trade Ideas for the Week June 29, 2015: Bonus Idea
- Top Trade Ideas for the Week of June 29, 2015: The Rest
- Top Trade Ideas for the Week of June 29, 2015: The Rest Premium
- Top Trade Ideas for the Week of June 29, 2015: The Best
- SPY Trends and Influencers June 27, 2015
- Macro Week in Review/Preview June 26, 2015