#-ad_banner-#Although inflation is low and the U.S. dollar is high, gold seems to be waking up. It’s hard not to notice that the yellow metal has already made quite a few changes for the better on the charts. And it appears gold mining stocks are coming along for the ride. First, let’s take a look at the long-term chart of gold futures. Using a log scale chart, we see they decisively moved above the major trendline drawn from the 2012 high, as well as the top of the trend channel drawn from the 2014 high. When… Read More
#-ad_banner-#Although inflation is low and the U.S. dollar is high, gold seems to be waking up. It’s hard not to notice that the yellow metal has already made quite a few changes for the better on the charts. And it appears gold mining stocks are coming along for the ride. First, let’s take a look at the long-term chart of gold futures. Using a log scale chart, we see they decisively moved above the major trendline drawn from the 2012 high, as well as the top of the trend channel drawn from the 2014 high. When we see breakouts through two different measures of trend, we should pay attention. Not only that, but gold futures are now above major moving averages, including the 50-day and 200-day. On the chart above, I used the 40-week moving average as a substitute for the 200-day. This month, prices moved to their highest spread above the moving average since 2012, which was arguably before the bear market really began. Gold mining stocks have also broken through long-term trendlines, and I think the smaller companies offer the most bang for your buck. To cut down on single stock risk, though, the… Read More