The situation in the precious metals market is quite specific at this time. We have gold moving higher on low volume and moving lower on increased volume (which is bearish), but during the last few weeks miners have outperformed gold which seems to indicate strength.
In yesterday’s FOMC Minutes Instant Reaction piece, we used the analogy of Goldilocks and the Three Bears to describe Federal Reserve officials diverse views on whether the economy is running “too hot” or “too cold.”
The last few days were quite encouraging for crude oil bulls as the black gold rallied above two declining resistance lines and the volume during Tuesday’s upswing was high. Is this enough to make the outlook bullish?