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Don’t Miss This Important Gold Price Signal!

Technical Analyst, Precious Metal Investor & Author

June 27, 2018

It is generally agreed that in a Gold Bull Market, the gold producers lead the way, by outperforming gold bullion. To examine this trend we visit Stockcharts.com and pull up a chart that compares mining stocks (GDX) to gold bullion (GLD).

This index bottomed in March and since then the miners have moved ahead of gold bullion. The first hurdle, at the 50DMA (blue line) was overcome in April. The next hurdle, at the 200DMA (red line), took several months, but it is now in the process of being ‘put in the rear view mirror’. The blue arrow points to the fact that for the past three days the daily range has been above the resistance. The supporting indicators (top and bottom of chart), are positive. A rise above the green arrow will convince a lot of investors that the gold sector is ‘the place to be’. The timing is likely to coincide with the resumption of trading, after the US July 4^th Independence Day Holiday.

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DISCLAIMER: Please do your own due diligence. Peter Degraaf is NOT responsible for your trading decisions.

Peter Degraaf is an investor with more than 50 years of experience. Google him, or visit www.pdegraaf.com

Peter Degraaf became interested in silver and gold when the Governments of the US and Canada proceeded to remove silver coinage from circulation in the mid 1960s.

He noticed the effect of Gresham’s law: “Bad money drives out good.” He became a coin dealer, attending coin shows all over The US and Canada. In 2001 he semi-retired from coin sales and concentrated on investing in precious metals. He mastered the art of technical analysis and applies this to his investments. In 2001 he started publishing a daily and weekly market report. His website is at http://www.pdegraaf.com/.