From gold bear to gold bull?
Meanwhile, miners have confirmed the rise in gold: with the exception of GDXJ, every major index has completed a double bottom and is trading near three-month highs. The chart below shows the daily line charts of GDXJ and GDX. We include the 400-day moving average, which is often an excellent indicator of the long-term trend. The next important resistance figures to be the 400-day moving average. That could coincide with gold at $1280.
We continue to see signs that precious metals are moving into a new bull market. gold has broken key resistance and is now breaking its downtrend against various equity indices. The miners are confirming gold’s rise. Moreover, let’s consider the context of these recent developments. They are occurring on the back of the second worst bear market (in price and time) in precious metals in 70 years. While I believe the bear market is over, I’m looking for more confirmation in the weeks and months ahead. The next important confirmation will be if (and when) gold and miners reclaim their 400-day moving averages.