Gold outperformance to continue into 2009

Friday, December 26, 2008 | posted by RedApple
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Our core investment theme into 2009 remains as follow:

1. long Gold versus Treasury (Treasury looks to be a potential bubble to us)
2. long Gold versus Eur/usd (Gold is technically very bullish against all currencies)
3. look for CRB bounce (emerging market will focus less on trades but more on what it needs)

Updating some of our Gold charts from an October post (Gold Boom Doom - Gold taking a breather vs SPX but still Strong vs Commodities - 29 Oct 2008).

A few points to note:

  1. Gold is edging towards its downward slope resistance but has turned technically short term bullish in early November and confirmed earlier this month. We will wait to see where we market Gold on Dec 31st to see if we get another YOY gain.

  2. Gold has consistently outperformed SPX (Equity) from the start of this year.

  3. It is good to see that Gold Stocks have played some catch up since we last talked about their under-performance versus Gold. (see Gold Boom Doom - Gold versus Other Assets - 16 Oct 2008)

  4. Gold has clearly held its ground versus CRB and Oil. This trend looks to continue.

  5. Gold is looking to gain grounds versus Treasury and EUR/USD. This is our core theme of 2009.

***** Update 28 Dec 2008 - for latest news and charting for Gold and Gold stocks, please check updates from our blog: Gold Boom Doom - Gold Related Blogs