Analyst: Gold’s Long Correction Is Officially Over

From The Gold Report: Technical analyst Jack Chan charts the completion of the gold market’s long correction.

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Our proprietary cycle indicator is now up.

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The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term.

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The gold sector is also on a short-term buy signal. Short-term signals can last for days and weeks, and are more suitable for traders that are nimble enough to get in and out of positions relatively quickly.

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A breakout was confirmed last week, suggesting that the multi-month correction since last summer is now over. This is hugely bullish for gold.

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Speculative sentiment, according to current open interests, is also supportive for overall higher prices.

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Similarly, silver is on a long-term buy signal.

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SLV (silver miners ETF) is on a short-term buy signal, and short-term signals can last for days to weeks, more suitable for traders.

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Silver’s speculative sentiment, according to open interests, just like gold, is supportive for overall higher prices.

Summary
The precious metals sector — including both gold and silver — is on major buy signal from a technical standpoint. The cycle is up. The multi-month correction is complete, and thus we are now looking for overall higher prices both in the short term and long term.

The SPDR Gold Trust ETF (NYSE:GLD) rose $0.13 (+0.11%) in premarket trading Monday. Year-to-date, GLD has gained 11.85%, versus a 4.02% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 33 ETFs in the Precious Metals ETFs category.


This article is brought to you courtesy of The Gold Report.

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