{"id":187072,"date":"2023-03-21T12:08:45","date_gmt":"2023-03-21T16:08:45","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=187072"},"modified":"2024-01-24T12:14:14","modified_gmt":"2024-01-24T17:14:14","slug":"chart-advisor-gold-hits-fresh-52-week-high","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor-gold-hits-fresh-52-week-high\/","title":{"rendered":"Chart Advisor: Gold Hits Fresh 52-Week High"},"content":{"rendered":"\n<p><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>By&nbsp;<\/strong><\/a><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>J.C. Parets<\/strong><\/a>&nbsp;&amp;&nbsp;<a href=\"https:\/\/get.allstarcharts.com\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>All Star Charts<\/strong><\/a><\/strong><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-monday-20th-march-2023\">Monday, 20th March, 2023<\/h2>\n\n\n\n<p><strong>1\/ Gold Hits Fresh 52-Week High<\/strong><\/p>\n\n\n\n<p><strong>2\/ Investors Look to Growth<\/strong><\/p>\n\n\n\n<p><strong>3\/ Oil &amp; Gas Services Slip<\/strong><\/p>\n\n\n\n<p><strong>4\/ Worst Week Since the Global Financial Crisis<\/strong><\/p>\n\n\n\n<p><em>Investopedia is partnering with All Star Charts on this newsletter, which both sells its research to investors, and may trade or hold positions in securities mentioned herein. The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-gold-hits-fresh-52-week-high\">1\/ <strong>Gold Hits Fresh 52-Week High<\/strong><\/h2>\n\n\n\n<p>Prices of <a href=\"https:\/\/www.investopedia.com\/terms\/p\/preciousmetal.asp\" target=\"_blank\" rel=\"noreferrer noopener\">precious metals<\/a> are rising again, with gold leading the way.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.investopedia.com\/terms\/g\/goldbug.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">Gold bugs<\/a> closed out last week with another strong performance, absorbing overhead supply at a critical level\u2014the former 2011 highs.<\/p>\n\n\n\n<p>Those former highs mark the peak of the last secular <a href=\"https:\/\/www.investopedia.com\/terms\/b\/bullmarket.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">bull market<\/a> for gold, and last week\u2019s breakout signifies a significant uptick in demand for the shiny yellow rock.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/03\/1-15-1100x561.png\" alt=\"\" class=\"wp-image-187073 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/561;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>It\u2019s hard&nbsp;to ignore the impressive upside follow-through across the precious metals space.<\/p>\n\n\n\n<p>Gold is breaking out to new all-time highs in currencies all around the world. Silver is trading back in the box, implying increased risk appetite. Meanwhile, gold priced in U.S. dollars is approaching fresh all-time highs of its own. <\/p>\n\n\n\n<p>The next secular bull market in gold could be taking shape.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-investors-look-to-growth\">2\/ <strong>Investors Look to Growth<\/strong><\/h2>\n\n\n\n<p>The recent volatility in the markets brought about big price swings on both an absolute and relative basis. <\/p>\n\n\n\n<p>The large-cap <a href=\"https:\/\/www.investopedia.com\/terms\/g\/growthstock.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">growth<\/a> vs. <a href=\"https:\/\/www.investopedia.com\/terms\/v\/valuestock.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">value<\/a> ratio just registered its second-largest weekly gain in history. We\u2019d have to go back to the <a href=\"https:\/\/www.investopedia.com\/terms\/d\/dotcom-bubble.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">dotcom bubble<\/a> crash in 2001 to find a week where growth outperformed value more than it did last week.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/03\/2-16-1100x537.png\" alt=\"\" class=\"wp-image-187118 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/537;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>In this ratio, we are using the <a href=\"https:\/\/www.investopedia.com\/terms\/r\/russell_1000index.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">Russell 1000<\/a> Growth ETF (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=IWF&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">IWF<\/a>) as the numerator and the Russell 1000 Value ETF (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=IWD&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">IWD<\/a>) as the denominator. This gives us a more comprehensive view of the growth vs. value dynamic than we would get using S&amp;P indices. <\/p>\n\n\n\n<p>We want to pay close attention to extreme <a href=\"https:\/\/www.investopedia.com\/terms\/r\/rateofchange.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">rate of change (ROC)<\/a> readings such as this, as they are evidence of momentum <a href=\"https:\/\/www.investopedia.com\/terms\/b\/breadth-thrust-indicator.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">thrusts<\/a>. Momentum thrusts tend to occur at turning points and can signal either the <a href=\"https:\/\/www.investopedia.com\/terms\/e\/exhaustion.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">exhaustion<\/a> of an old trend or the initiation of a new one. Considering the ratio fell steadily throughout 2022, it is unlikely that this signals exhaustion. A new relative regime that favors growth stocks could be underway.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-oil-gas-services-slip\">3\/ <strong>Oil &amp; Gas Services Slip<\/strong><\/h2>\n\n\n\n<p>Despite today\u2019s relative outperformance from value-oriented sectors, many of these areas are under pressure as yields begin to roll over.<\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.investopedia.com\/terms\/e\/energy_sector.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">energy sector<\/a> has been particularly hard hit. And it&#8217;s not just crude oil and natural gas futures that are taking a hit\u2014so are the strongest subsectors. <\/p>\n\n\n\n<p>Here is the SPDR Oil &amp; Gas Services ETF (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=XES&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">XES<\/a>):<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/03\/3-18-1100x537.png\" alt=\"\" class=\"wp-image-187120 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/537;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>While many energy stocks were already under pressure, XES was breaking out to fresh multi-year highs earlier this month.<\/p>\n\n\n\n<p>But as in many other <a href=\"https:\/\/www.investopedia.com\/terms\/c\/cyclicalstock.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">cyclical<\/a> areas of the market, the bears have taken control. Last month\u2019s breakout in XES is now failing.<\/p>\n\n\n\n<p> For now, these market areas could represent risk as money begins to flow back into growth stocks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-worst-week-since-the-global-financial-crisis\">4\/ <strong>Worst Week Since the Global Financial Crisis<\/strong><\/h2>\n\n\n\n<p>The <a href=\"https:\/\/www.investopedia.com\/terms\/f\/financial_sector.asp\" target=\"_blank\" rel=\"noreferrer noopener\">financi<\/a><a href=\"https:\/\/www.investopedia.com\/terms\/f\/financial_sector.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">al sector<\/a> has been gripped by volatility in recent weeks as weakness from regional banks trickles into other markets and <a href=\"https:\/\/www.investopedia.com\/terms\/a\/assetclasses.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">asset classes<\/a>.<\/p>\n\n\n\n<p>Both the absolute and relative trends for financials have been damaged by the intense selling pressure. <\/p>\n\n\n\n<p>The chart below shows the Financial Sector ETF (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=XLF&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">XLF<\/a>) registering its worst week since the <a href=\"https:\/\/www.investopedia.com\/articles\/economics\/09\/financial-crisis-review.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">global financial crisis<\/a> relative to the S&amp;P 500 (<a href=\"https:\/\/www.investopedia.com\/articles\/economics\/09\/financial-crisis-review.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">SPX<\/a>):<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/03\/4-17-1100x546.png\" alt=\"\" class=\"wp-image-187121 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/546;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>Outside of last week, such extreme negative readings had only occurred during the 2007-2009 <a href=\"https:\/\/www.investopedia.com\/terms\/b\/bearmarket.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8628769-20230320&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=032023\" target=\"_blank\" rel=\"noreferrer noopener\">bear market<\/a>. This could represent the beginning of serious structural damage in the sector unless the bulls step in soon to fix it. If they don&#8217;t\u2014and we continue to see further downside from financials\u2014we could expect the overall market to crack as well.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally posted 20th March, 2023<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Prices of precious metals are rising again, with gold leading the way.<\/p>\n<p>Gold bugs closed out last week with another strong performance, absorbing overhead supply at a critical level\u2014the former 2011 highs.<\/p>\n","protected":false},"author":186,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,14,17,18,6,8,9,22,23,26,3],"tags":[6689,6685,207,12993,2006],"contributors-categories":[13686],"class_list":{"0":"post-187072","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-commodities","7":"category-etfs","8":"category-futures","9":"category-macro","10":"category-north-america","11":"category-region","12":"category-securities","13":"category-stocks","14":"category-technical-analysis","15":"category-text-articles","16":"category-traders-insight","17":"tag-iwd","18":"tag-iwf","19":"tag-spx","20":"tag-xes","21":"tag-xlf","22":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast 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