We have spoken for many weeks how gold has been acting as the safe haven that it normally would do. Of course it is difficult to describe the overall market as rational, with markets climbing last year despite the inclusion of just a select few participants. But is gold “a canary in the coal mine” (of course many have seen the overall economic warning signs) with its bullish behavior recently? Is it sending a signal that perhaps we have seen a peak in the greenback (the USD chart could be in for a double top at the round par number and it has formed a bearish rising wedge here too)? Below is a chart of the ETF GLD which we posted early last December, and later on we will demonstrate why we think it makes sense to invest in this rather than individual miners.
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