I like the action in GLD and SLV. GLD has held above the 50 DMA and it worked off the overbought condition from Sept./Oct. Last Tuesday GLD took in another 18 tons of gold. It has now surpassed the physical gold holdings of the central bank of China. Despite the strength in the dollar gold has not been able to break through support. The XAU is starting to look like it wants to break out of the consolidation to the upside. I have no desire to chase the market rally as I feel it's ultimately doomed to failure. I am willing to commit capital to a secular bull market that's pulled back and consolidated since the larger overall trend is in my favor. Stops are very close on this one. A close below support would probably signal the correction isn't done yet and one could exit with minimal losses.
Gold Miners - What next?
8 months ago