Gold Can Tell The Future
What would you give to know the future? Well it appears more and more that gold may be telling Wall Street just that. It has happened many times over the last few months and yesterday it happened again. The markets were looking ugly heading into Monday morning. Fears from Europe continued to pound Wall Street traders and the Dow Jones Industrial Average futures were setting up for a 200 point decline. However, while the markets were scary, gold was not confirming the move. The SPDR Gold Trust (ETF) (NYSE:GLD) was sharply lower. Many people scratched their heads at this. The amateur thought process could not understand why gold was not sharply higher on massive fear. Remember, gold generally spikes higher on fear.
The fall in gold was telling of a reversal on the horizon. This was an amazing leading indicator telling of a future market reversal. Sure enough, the Dow turned around late in the day, surging over 250 points off their lows. Gold remained down. This was a great tell and should be monitored constantly as a leading indicator.