PM Daily Market Commentary – 08/05/2020
Here are the AUD/Silver and AUD/Gold charts that makes me think that PM run up is overheated at present and presents a pullback scenario.
Here’s some more evidence for that one:
Gold’s daily/weekly/monthly RSI-7: 93/90/94
Not something you see every day.
I’ll do the math on how often that happens…
EDIT: I took all 3 RSI values and added them together. Today was 274.8, which was #10 in the whole GC timeseries. So, probably not “the” top, but perhaps, “a” top.
Wow – so in Gold we have not seen RSI’s like this since the one month period around the start of 1980….. Bet silver is even higher….
FYI – the 5year chart for the run up in AUD/Silver looks spectacular!
Another nugget of info I learnt in the last month is what drives the fluctuations on the AUD…. The strongest correlated is no longer Iron Ore, but is now Copper. If fact Iron Ore price is (currently) a very poor predictor of the AUD exchange rate.