SPDR Gold Shares (NYSE:GLD)
Gold's tape (DOWN, DOWN, UP), a trend similar to Bitcoin, advises caution for the bulls (see Matrix). Neither gold nor bitcoin's primary trend has enough slack to buffer a decline from current prices. Continuation of the decline in May could easily generate triple downside alignment in June, a serious warning for the bulls. The US Dollar Index, trends positioning for triple upside alignment in June, confirms the warning.
The precious metals composite (PMC), a key intermarket trend, climbed above 0% and entered a bullish phase several weeks ago. Caution towards precious metals is still advised since only 2 out of 3 components are properly aligned for a bull phase. The gold to silver ratio, a key intermarket trend for precious metals, is not bullish. The PMC's bullish transition is vulnerable until all three components align. In other words, gold is not ready, largely because confidence in governance is still too strong. This backdrop helps explain why Bitcoin has been mired by consolidation for weeks.