Gold & Gold Miners Rally; Approaching Key Tests

posted in: Gold, Gold Stocks | 0

Gold in US dollar terms is making fresh 3-month highs this morning as it looks increasingly like a rounding bottom pattern was completed between November and January:

 

Gold_Daily_1.26.2016

Meanwhile, the gold miners (GDX) are rising for the 5th consecutive session and quickly approaching a band of resistance between $14-$14.50:

 

GDX_1.26.2016

The last couple of times (May and August 2015) that GDX posted a 5 session win streak a large decline was just around the corner. How GDX trades over the next 1-2 weeks will be a key litmus test as to whether this is just another bear market rally or a notable change of character after a six-month bottoming process.

 

CNBC: Gold miners are ‘the best trade in the world’