{"id":19218,"date":"2021-12-09T07:30:44","date_gmt":"2021-12-09T12:30:44","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=19218"},"modified":"2021-12-09T07:30:44","modified_gmt":"2021-12-09T12:30:44","slug":"some-good-news-for-gold","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/some-good-news-for-gold\/","title":{"rendered":"Here\u2019s Some Good News for Gold"},"content":{"rendered":"

It’s going to be a Happy New Year for gold, and a tough month for bitcoin.<\/p>\n

That may seem like an odd statement at first. After all, gold and bitcoin are supposed to serve the same purpose – to be a store of value against the collapse of fiat currencies.<\/p>\n

So, you’d think that they’d move in the same direction most of the time… but they don’t.<\/p>\n

Gold and bitcoin often move inversely to each other – when one rallies the other falls, and vice versa. And based on the following chart, it looks like gold is gearing up for a rally while bitcoin is poised to fall.<\/p>\n

Let’s take a look at this ratio chart comparing the action in gold to bitcoin…<\/p>\n

\"Chart\"<\/div>\n

When this chart is moving higher, it means gold is performing better than bitcoin. Whenever this chart is falling, bitcoin is outperforming gold.<\/p>\n

From mid-July until early November, this chart was falling. During that same time, the price of bitcoin gained more than 100%, and gold lost about 4%.<\/p>\n

Notice though, what’s happened over the past month. This ratio chart has been quietly moving higher. The ratio has popped above all of its various moving averages – which is bullish<\/a>.<\/p>\n

And, the moving averages have flipped to a bullish formation – with the short term 9- and 20-day exponential moving averages<\/a> (EMA – red and green lines) crossing above the 50-day moving average<\/a> (MA – blue line).<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The last time we had a similar setup was back in May.<\/p>\n

The first chart below shows what happened to gold (blue arrow), and the second shows how bitcoin did back then (red arrow)…<\/p>\n

\"Chart\"<\/div>\n
\"Chart\"<\/div>\n

As you can see, May was a wonderful month for gold. The shiny, yellow metal gained nearly 7%.<\/p>\n

Meanwhile, bitcoin got crushed. The “King of Crypto” lost 45% of its value in May.<\/p>\n

And now, as we head into the holidays and the prospects of a brand-new year, the ratio chart is rallying again. If the action plays out similar to what we saw in May, it should be a very Merry Christmas for gold.<\/p>\n

And, if you’re looking to buy bitcoin, then you may be better off waiting until the new year.<\/p>\n

Best regards and good trading,<\/p>\n

\"signature\"<\/p>\n

Jeff Clark<\/p>\n

<\/p>\n

Reader Mailbag<\/h2>\n

In today’s mailbag, Jeff Clark Trader<\/em> member Robert shares his thoughts on Eric’s recent essay on bitcoin<\/a>…<\/p>\n

\n

I appreciate the information you provide. It’s very interesting to see that the institutions are now manipulating bitcoin, just like they do for gold and silver.<\/p>\n

– Robert S. <\/strong><\/p>\n<\/blockquote>\n

Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

It may seem like an odd statement…<\/p>\n","protected":false},"author":49,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-19218","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19218","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=19218"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19218\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=19218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=19218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=19218"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=19218"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=19218"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=19218"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=19218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}