Producer Prices … ‘Explode’

Yet, Gold Heads Lower ?

It just doesn’t add up.

U.S. producer prices explode to record high and gold heads lower.

Is anyone paying any attention?

Apparently, not.

Today’s trip to the office supply store, had those employees and some customers alike, still putting toilet paper on their face in an attempt to ward off goblins … unseen.

Meanwhile, down in Kiwi-Land, looks like the Prime Minister has declared the coast is clear for orgies up to 25-people.

Talk about, “In the days of Noah …” but, I digress.

Gold (GLD), posted lower and the miners GDX, did as well.

The nuance with the miners, we may have just seen a pivot lower … increasing the rate of descent.

Senior Miners, GDX

We’ll use the same chart scaling from yesterday’s update.

Looking closely, today’s bar pulled away from the right-side trend-line just a bit.

Next, the same chart but on a 4-Hour time-frame

Note how a new (increased angle) trendline can be drawn.

The next chart zooms-in

There have been four, four-hour hits on the new more aggressive downtrend line.

That new line (thus far) is declining at about -94%, on an annualized basis.

Summary

If this is a more aggressive pivot lower, it’s very early in the trend. The next session can easily negate the trend or just as easily, provide confirmation.

Maintaining short via DUST (not advice, not a recommendation).

Stay Tuned

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

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