By Richard Russell
The Transports have dropped to their lowest levels since last December. The Industrials have not confirmed the weaker Transports. This downside non-confirmation suggests that the Industrials could rally strongly. Meanwhile the latest data suggests that the US economy is much weaker than thought. The weakness suggests that it could be quite awhile before the Fed raises rates. With short rates staying at zero as far as the eye can see, the situation is now bullish for gold.
As I write an hour before the close, gold is up 15.7 to 1217.7. Not being left out of the rally, silver is up 0.26 to 16.96. I believe the bear market in gold is over and we now have a large base to support much higher prices for gold.
It now appears increasingly certain that the US is still grappling with the Great Recession. Not only will the Fed leave rates at ... Log in or subscribe to continue reading.