GOLD and VIXY - Gold rallying without stock market fear

6 באפר׳ 2015

Here is a way to look at the Gold market (XAUUSD) by way of looking at stock market volatility, which can be measured by VIXY. VIXY is a measure of options volatility and frankly is just ONE WAY to look at fear. Either way, if you look at Gold here, you will see that it is rallying without much background fear in place. What I have done is to place a projection on the current price that includes the last time gold rallied with VIXY rising from under the 19 level to the 24 level. If Gold can achieve the same gain as fear increases, then perhaps we could see the same price advance and reach near the $1350 level before settling back.

With Global QE aggressively flooding into the markets worldwide, I wonder when Gold will come to the top of investors minds again. For now, we take one day at a time and try not to predict far into the future. If the market can keep holding onto the gains it has made YTD, it could begin attracting some attention.

I think the START OF THE YEAR level of 1182 is a big level in gold and you can also see that the market LIFTED OFF from that level on April 1 to signify that level. Let's keep a close eye on this and see if VIXY surges quickly with all of the recent worries about Russia, Iran Nuclear Talks, and weak US Jobs Numbers. Time will tell. Stay tuned!

Agree or disagree with this rally??

Tim 9:29AM EST April 6, 2015