Don't Miss This Important Signal!
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
It is generally agreed that in a Gold Bull Market, the gold producers lead the way, by outperforming gold bullion.¬† To examine this trend we visit Stockcharts.com and pull up a chart that compares mining stocks (GDX) to gold bullion (GLD).
This index bottomed in March and since then the miners have moved ahead of gold bullion.¬† The first hurdle, at the 50DMA (blue line) was overcome in April.¬† The next hurdle, at the 200DMA (red line), took several months, but it is now in the process of being ‘put in the rear view mirror’.¬† The blue arrow points to the fact that for the past three days the daily range has been above the resistance.¬† The supporting indicators (top and bottom of chart), are positive.¬† A rise above the green arrow will convince a lot of investors that the gold sector is ‘the place to be’.¬† The timing is likely to coincide with the resumption of trading, after the US July 4th Independence Day Holiday.
DISCLAIMER:¬† Please do your own due diligence.¬† Peter Degraaf is NOT responsible for your trading decisions.¬†
Peter Degraaf is an investor with more than 50 years of experience.¬† Google him, or visit www.pdegraaf.com