Gold has the potential to outperform Equities

London (Nov 12)  “When gold hits its lows and equities are peaking, the ratio will show a topping formation as we can see on the chart. The other two conspicuous technical events on the enclosed chart, are the ratio line getting back inside the Keltner channel and the RSI alleviating the overbought condition. Note how the RSI is rejecting the 70% level on recent data adding weight to the argument that there is potential for gold to outperform equities in the coming sessions.”

“Gold spot, nominally running at 1166 with yesterday's close at 1163 US dollars, carved out a morning star pattern on the daily chart.”

“The metal has triggered a bullish reversal dynamic across a plethora of other gold instruments. Suggestive of a degree of exhaustion are patterns like abandoned babies and tasukis. A rising gold price is usually accompanied by rising non-USD currencies (since the dollar, in which gold is quoted, is falling).”

Source: FXstreet