Trading Places with Tom Bowley

Is Gold Truly Our Safe Haven Right Now?

Tom Bowley

Tom Bowley

Chief Market Strategist, EarningsBeats.com

At this exact moment? Yes. Am I a fan longer-term? No. Gold ($GOLD) nearly always is a good choice during periods of anxiety and we sure have plenty of that right now. So owning a piece of it would make sense for anyone wanting a hedge against the stock market or simply trying to outperform that benchmark index while equity prices are falling. Take a look at this chart:

There's a lot going on here, but note the relative strength of gold vs. the S&P 500 ($GOLD:$SPX). The blue directional lines show that gold is a great relative performer after the 5 day SMA of the Volatility Index ($VIX) climbs above 15. That's a very simplistic explanation of one part of this chart, but it will be featured as part of my Talking Technically segment this morning on Trading Places LIVE at EarningsBeats.com.

My show starts at 9:00am EST and Talking Technically will begin at roughly 9:05am EST or so. If you'd like to listen to a deeper conversation on this subject, please join me! You can access the show live by following this link:

https://zoom.us/j/248920901

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Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More