Gold and Silver is showing signs of Price/Stochs Bearish divergences typical of an Elliot Wave 5 Price Action.
Critical Support Level :
$177 for $GLD.
$ 40 for $SLV.
Gold and Silver has been a bullish hedged against the world on crisis mode. Well, namely US and Europe finances. Their stalling or potential reversal will signal also the reversal in the equity markets.
US$ index has broken out of a long term downtrend. Another major signal in the financial market.
Can US equity and US$ rise together ? And Gold reversed at the same time ?
This scenario call for faith to return to the United States of America, both in her corporates, finances, equities and the demand of the US$ as a result.
Private Equity firms are trying to cashed out as well with the looming Carlye Group recent annoucement of its going IPO which it may be positioning itself for the coming infrastructure play with the introduction of the I-Bank. "I" for Infrastructure. And if all these are to happen, and Obama has his way, a weak equity market does not lend to the cause. Therefore Equity Market must rise and sentiment improve.
Central Bankers may be coordinating with Bernanke the chief of US Fed Reserve to introduce long term liquidity to fund Global Infrastructure projects to boost demand globally. And though the economy may go sideways in the next decade, at least the official macro economic indicators will look pretty while the avergae joe in the street may not be any better off.
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