The Trend is your friend, until it isn’t

By David Brady – SprottMoney

Once again, we’re seeing higher lows and higher highs despite the data screaming for an imminent and sizeable pullback. The trend is dominating the data. Further evidence of this is the fact that Gold and Silver are clearly ignoring the recent rallies in DXY and the 10Y yield. Typically, the two biggest markets on earth dictate what happens in the relatively tiny markets of Gold and Silver, but not this time. This does not negate the risk of pullbacks. Quite the contrary, we should expect them just as in the 2010-2011 rally, but the trend is clearly up until proven otherwise.