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CONVEXWORLD signal update 31st December, 2016
31st December, 2016
More than one year has passed since GOLD ON signal was trigged on 31st December 2015.
December 2016 was again a difficult month for GOLD.
At the last year’s end Federal Reserve meeting, an hawkish tone did not pose well for GOLD: Us Dollar, equities jumped on the news and kept rising until year’s end.
Still now, GOLD is facing a negative combination of rising real rated, a strong US Dollar, worldwide improving economic figures and more expected US rising rates in 2017.
BUT
In this difficult environment and negative sentiment, there are some good news for GOLD:
GOLD closed the year with a gain +8%
HUI (gold miners index) closed the year with a gain +70%
GOLD is still higher then December 2015 low: higher bottom.
COT figures confirmed that speculative buying is completely disappeared, only the strong hands have remained.
GOLD is exchanged at premium in China.
In India, the situation is stabilizing and Indian people are starting to buy GOLD again.
Russia’s Central Bank increased, in a meaningful way, GOLD’s last purchases.
CONCLUSION
CONVEXWORLD model is still GOLD ON, so this is just a natural retracement in an bull GOLD market started last year.
Maybe, there is still a long way to go and have fun!
CONVEXWORLD tries to make a sense of financial markets!
PS. Please read carefully our Disclaimer
On 31st December, 2016 CONVEXWORLD model confirmed the signal GOLD ON.
Copyright Convexworld 2016
