The Midas Touch Gold Model
The Midas Touch Gold Model Author Florian Grummes – Acting-Man
Introductory Remarks by PT
Dear readers, we are hereby beginning to publish material from a new author, Florian Grummes of Midas Touch Consulting. Some of you may already know Florian from his contributions to recent issues of the annual “In Gold We Trust” report by Incrementum. He is a well-known and highly respected market analyst (particularly of gold and cryptocurrency markets) in the German-speaking parts of the world and we hope we will be able to contribute a bit to making his extremely interesting work more widely known to an international audience.
Meet Florian Grummes, founder of Midas Touch Consulting.
The Midas Touch Gold Model is a proprietary model Florian developed, which as the name already indicates is designed to evaluate trends and potential trend changes in the gold market. Below follows the most recent update of the model. We are posting this update with a slight delay of two days, but that should not be an issue – if any major signal changes occur, they will be conveyed as soon as we are apprised of them. Without further ado, here is the report (as we are always wont to do, we have added a few charts and caption comments where appropriate):
The Midas Touch Gold Model™ is Still Neutral
While gold and silver prices are collapsing since mid June, the Midas Touch Gold Model™ has been in neutral mode for the last two months already. It was very important to make this call to move to the sidelines and watch what would unfold in the precious metals sector.
In hindsight a clear and bearish sell signal would have been a good opportunity to profit from shorting these markets, but due to the relative strength seen in the mining stocks the model simply remained neutral. Aside from its overall neutral stance, a lot of new bullish and bearish signals have been triggered within the .Midas Touch Gold Model™
All Time Frames in USD are Bearish
First of all – and that is a very negative development – the monthly chart for Gold in USD has shifted to a bearish signal. It now takes a move in the gold price back above USD 1,365 to turn this signal around again. The last time this “big picture” signal changed was 11 months ago. Obviously, the big picture component will be negative for the next couple of months at least!
Looking at the weekly chart for Gold in USD, we find an extremely negative “bearish embedded stochastic status”, which is dragging the market down for many weeks already. Once this signal changes, the recovery rally will have started.
Gold weekly, with RSI and Stochastics. The recent downtrend in gold was relentless (mirroring the rally in the US dollar), but was not confirmed by precious metals stocks – unfortunately the latter may be about to change in view of earnings-induced weakness in several senior producer stocks in recent days. [PT]
On the daily chart it would now take a gold price above USD 1,244 to shift the chart to back to a bullish status. More precisely, right now it seems that if gold were able to close above USD 1,237, the probability that a bottom has been established would increase strongly .