With the price of crude oil trading near $61, the U.S. dollar falling and investors unsure where gold and silver are headed from here, today King World News shares a fascinating piece which features a key illustration about what is really happening with the price of gold.

By Louise Yamada, Founder of Louise Yamada Technical Research Advisors

May 6 (King World News) – Gold Spot price (GOLDS-1,178.59) carries an enigma in behavior over the past six months in that with the dollar rally, Gold went nowhere; with the stock market rally, Gold went nowhere. Both of these relationships are generally inverse in nature.

However, from a Relative Strength perspective, the expected underperformance of Gold versus the dollar and versus stocks, has held Gold has underperformed both.
Now with the dollar pulling back and the stock market mixed, Gold is still flat (see chart below). The potential for a Gold rally may still lie ahead, but at the moment there is no compelling technical indication, as both the monthly and weekly momentum models remain flat and indecisive.

KWN Yamada I 5:6:2015

Therefore, the stalemate between the support from 1,147-1,131 and resistance at 1,273-1,300 remains. Whichever parameter is breached should determine the next short-term direction for Gold. This was a small portion of Yamada's 50 page report.  To subscribe to Louise Yamada Technical Research Advisors CLICK HERE.

***ALSO JUST RELEASED: Gerald Celente – We Are About To See Total Panic Engulf The World CLICK HERE.

© 2015 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

King World News RSS Feed

The audio interviews with Rick Rule, Bill Fleckenstein, John Mauldin, Michael Pento, Gerald Celente, Egon von Greyerz, Dr. Paul Craig Roberts, Andrew Maguire, James Turk, Dr. Philippa Malmgren, Eric Sprott, Robert Arnott, David Stockman, Marc Faber, Felix Zulauf, John Embry and Rick Santelli are available now and you can listen to them by CLICKING HERE.

Eric King