Gold To Pressure TSX In Coming Weeks

By Jeff Pierce

The TSX has been dragged down by Gold as of late and is fast approaching support near 12600. The Canadian Index has been strong the entire summer and has stayed bullish when my timing signal for the Dow and Nasdaq both turned bearish, but that could change very soon. It's still bullish, however I see some problems for this index if my theory of Gold retesting it's lows plays out. It's going to boil down to just how affected Canadian stocks will be by the price of gold if it can absorb the mining sector pulling back.

If I'm wrong about gold moving lower in the short term then the TSX should be OK and not turn bearish.