This weeks edition of Commodities Countdown notes that the commodities had a stalled week. Gold and the gold miners traded down this week. Gold was down 1.25% and Gold miners traded down 1.96%. Silver struggled as well, down 4%. Copper was down a couple of percent. Crude and Natural gas were both down 1.1%. While it wasn't ugly, a few charts turned over. However, on Thursday November 30th, the gold stocks held their ground, and oil stocks traded up.
To compliment the weakness in commodities, the $USD also traded lower, which is not the normal relationship. The US dollar did not bounce at all when the stock market jumped on the back of the increased probability for tax reform passing Thursday. My primary analysis of the dollar is that we are in a $USD bear market. We should see the direction resolve itself in December. If the $USD breaks down, we would expect a breakout in a lot of the commodities. So the video marks some important things to watch for over the next month.
Greg Schnell, CMT, MFTA