Just a quick post here. As I mentioned here, gold and gold equities appear to be setting up for a long-term turn. Please don't take this call as suggesting that the ultimate bottom is in are that prices will rise to infinite from here because I am not. That said, I think we are seeing signs the selling pressure is abating in conjunction with downside momentum that has slowed. For a longer-term perspective, lets look at the weekly charts for the GDX and the GLD.
Marketvectors Gold Miner ETF- GDX
Gold SPDR ETF- GLD
First, you should notice that both charts look similar so I will discuss the similar characteristics. After announcing the continuation of QE to infinity, gold and gold related investments popped. I thought and continue to think that this was a sign of a trend change. Alas, the turn in all that glitters appears to be more complex and precious metal related investments have moved back toward the yearly lows. That said, the decline has come on falling volume levels, suggesting that potential sellers are... less motivated. Technically speaking, the selling pressure also appears to be abating. The MACD continues to improve from the June/July lows. More so, the trend in the RSI has diverged from the price trend, as the RSI posts higher lows. All together, I think could suggest a long-term turn in the precious metal related investments is at hand.
Marketvectors Gold Miner ETF- GDX
Gold SPDR ETF- GLD
First, you should notice that both charts look similar so I will discuss the similar characteristics. After announcing the continuation of QE to infinity, gold and gold related investments popped. I thought and continue to think that this was a sign of a trend change. Alas, the turn in all that glitters appears to be more complex and precious metal related investments have moved back toward the yearly lows. That said, the decline has come on falling volume levels, suggesting that potential sellers are... less motivated. Technically speaking, the selling pressure also appears to be abating. The MACD continues to improve from the June/July lows. More so, the trend in the RSI has diverged from the price trend, as the RSI posts higher lows. All together, I think could suggest a long-term turn in the precious metal related investments is at hand.
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