Friday Chart Fiesta

First the news.

Help May Be on the Way for the Mortgage Market

A plan being hatched by the Bush administration and the U.S. mortgage industry to temporarily freeze interest rates on some troubled U.S. subprime home loans could provide a lift to financial markets, which have been growing anxious about the more than two million home loans expected to reset to higher rates.

and ...

Bernanke hints Fed is open to more interest rate cuts. WASHINGTON — Federal Reserve Chairman Ben Bernanke said Thursday that the central bank must remain "exceptionally alert and flexible" on policy, given "greater than usual" uncertainty about the outlook and "renewed turbulence" in financial markets that threatens growth. The chairman's comments to the Charlotte Chamber of Commerce appeared to bolster the chances for an interest rate cut when Fed policymakers meet Dec. 11

XX Sean's note -- on CBNC, they're talking confidently of a 50-basis point cut at the next meeting.

So what effect does this have on gold, which has been under pressure lately?

I like to look at monthly charts from time to time, as do other analysts. This next chart shows why technicians have been selling gold recently ...

I don't agree with their view, but they're entitled to it. Now, how about gold stocks?

We often see gold stocks lead the metal higher, and I think that's what we could see this time. Finally, let's look at oil ...

I'm on wait-and-see with crude.

Have a great Friday

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