George Gero with an update on gold demand
Vice President of RBC Capital Markets Global Futures, George Gero joins us today to discuss the pick up in demand for gold. George closely tracks open interest for gold and silver. He also provides a general outlook on what is driving investors to put money in gold as well as risk assets.
Click download link to listen on this device: Download Show
This is impressive:
https://thefinancialtap.com/wp-content/uploads/sites/19/2016/02/2-27_flows_into_Gold.png
AUM = Assets Under Management
The pennant upper line is drawn incorrectly, in my opinion.
He uses the daily low for the bottom line and …. something else for the top line (it is NOT the daily high)?
Since I like my lines to touch at least three points, I’m fine with what he did. Also, if you move his line down, you’ll see that it is pretty much parallel to the descending closing highs — which some people would use in the first place. The inverse symmetry to the lower line also adds weight to what he did as does the fact that the angle is about 45 degrees.
“Gann believed that the ideal balance between time and price exists when prices rise or fall at a 45 degree angle relative to the time axis. This is also called a 1 x 1 angle (i.e., prices rise one price unit for each time unit).”
Huh. I am wrong again (And I sounded so confident in post).
You are a wealth of knowledge, Matthew. Thanks again !
I’m not going to say you are wrong. The typical pennant does start at the high so variations are open to debate.
I googled it and couldn’t find a discussion about such variations so it might just come down to opinion (hopefully based on experience).
This looks worthwhile: http://www.sju.edu/int/academics/hsb/finance/wstr/pdf/CPGuide1.pdf
Things look better if we just look at the weekly chart. As I’ve said recently, the weekly is more important at the turn of a multi year trend because big money doesn’t need to concern itself with the daily chart noise.
From this perspective, another move higher looks probable.
Hard to argue with Professor Matthew…………….. 🙂
I don’t know about that, Jerry, but thanks.
Brian – After today’s action, I wonder if Loukas would opt for the line you had in mind. I would.
Btw, look at today’s volume. It is interesting that it exceeded the spike on the day of the high about three weeks ago. Such spikes are common at the end of a move so the current spike just might be a sign that the consolidation is near its end. A lot of energy is going to be unleashed.
He has commented here before, so maybe he’ll share some details.
Yes, it would be nice to hear from Bob again on this blog. He posted for a while and then vanished. He has some interesting analysis.
Cory – Thanks for bringing George Gero back on. He’s got a holistic macro approach to commodities and the general markets.
It’s a little soon to say so but I think silver might have bottomed versus gold.
SLV:GLD
http://schrts.co/0FC7IC
If this proves to be a cup and handle pattern, silver could be heading for $17.35 or so…
Matthew UR the professor u MADE the vicious cyclical bear market easier to handle ohhhhh u jerry and……, Irish tony!!!! Lol!!
Thanks Marc, that’s good to hear. The new bull is going to be a big one, I’m convinced of that.
YOU too……………SDMARC……………… 🙂
Gold coin demand up 236% in Feb…….kitco