Gold, the Safe-haven Investment Alternative

Gold, the Safe-haven Investment Alternative

$DIA $SPY $QQQ $RUTX $VXX $GLD $XAU $USD

Gold Dealers Report Big Shortages of Small Bars and Coins

Gold has been and is the traditional safe-haven of choice for investors looking to protect themselves against stock market dives. When Bear markets come on, gold often performs very well.

Gold is off a bit this Spring, though it is up on the year in a choppy market. That gives a good opportunity to many investors to buy on the dips so that they can enjoy the future gain.

In Y 2008, gold declined along with stock markets through the worst part of the financial crisis, then moved North as a safe-haven asset once investors realized that the Great Recession was real. Its price nearly 3X’d over the next few years, inspiring investor to buy and hold gold. If its performance during the coming recession is similar, gold at 2,500 oz should be well within reach, and even $3,000 an ounce is not out of the question down the road.

Thursday, Gold prices were despite a rising USD as the US yields edge higher. Gold price volatility is elevated and will continue to generate volatile action.

On the day, gold recaptured support which was former resistance near the 50-Day MA at 1,592.  Key resistance on the Yellow metal is seen near the March highs at 1,700.

A short term trend is now positive, as the MACD histogram also generated a crossover buy signal, but seeing the trajectory flattening meaning we will see some consolidation in here.

Thursday, the major US stock market indexes finished at: DJIA +469.93 at 21413.50, NAS Comp +126.73 at 7486.66, S&P 500 +56.40 at 2526.90

Volume: Trade on the NYSE came in at 1.3-B/shares exchanged

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bearish with a Bullish bias.

  • NAS Comp YTD: -16.6%
  • S&P 500 YTD: -21.8%
  • DJIA YTD: -25.0%
  • Russell 2000 YTD: -34.9%

Looking Ahead: Investors will receive the Employment Situation Report (NFPs) for March and the ISM Non-Manufacturing Index for March Friday.

Have a healthy day, stay home!

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