Some Positive Gold Market Charts

A good place to start is at the seasonal tendencies for gold. There are seasons when gold drops in price, simply due to a lack of interest on the part of investors, and there are times when there is a seasonal tendency for investors to flock into the gold market. 

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This chart courtesy goldchartsrus.com shows January is historically the best month for owning gold and gold products, such as mining stocks. The Christmas rally usually lasts into February before producing a seasonal top.

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All other charts in this essay are courtesy Stockcharts.com. Featured is the daily bar chart for gold. Price is rising inside the blue channel. The supporting indicators are positive. The horizontal green arrow points to a level of previous resistance that appears to be ready to offer support. A close above the blue arrow will confirm that a new uptrend is getting underway.

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Featured is a chart that compares gold mining stocks (GDX), to gold bullion (GLD).In a gold bull market, we expect GDX to outperform GLD (as now). Quite often, when price touches the rising 200DMA (red line), while the CCI (Commodity Channel Index), drops to -100, (bottom of the chart), we are presented with a buying opportunity – see the blue arrows. Our subscribers benefit from this type of in-depth analysis. Notice also that the moving averages are in positive alignment, and rising!

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Featured is a chart that compares the mining stocks of the HUI index to the S&P500 index. While investors have been mesmerized by the constant rising of the S&P and DOW, it turns out that mining stocks have done even better, as can be seen clearly by the action inside the blue channel. The supporting indicators at top and bottom are positive, along with the rising 200-day moving average (solid blue line). The vertical green arrow hints at the start of another rally. Got Gold?

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Disclaimer: Investing involves risk taking. Please do your own due diligence. Peter Degraaf is NOT responsible for your trading decisions.

Peter Degraaf is a stocks and commodities investor with ...

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Linda Willis 5 months ago Member's comment

I would think the tensions with Iran would be enough to keep gold high.