Tuesday, September 19, 2023

Dow Theory Update for September 19: No changes in trends but something is going on with gold

 All the last updates I produced for gold/silver, GDX/SIL, and TLT/IEF and the U.S. stock market remain unchanged. Markets are like a coiled spring, and the final breakout will likely carry out significant follow-through. 


However, while markets remain range-bound, something is going on with physical gold. I recently found a Bloomberg article indicating that Shanghai's gold is commanding a $120 premium over international prices. Is this normal? Is there a shortage of physical gold and an overabundance of paper gold? I still don't know, but the chart is telling. 


 
Furthermore, I got to know that premiums for gold bars in Switzerland are also going to the roof. Temporary scarcity of physical vs. paper gold? Future events will shed more light.


Sincerely,

Manuel Blay

Editor of thedowtheory.com

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