From The Gold Report: Technical analyst Jack Chan charts the latest moves in the gold and silver markets, which indicate a bottom could be forming in both the metals themselves along with the mining stocks.

Our proprietary cycle indicator is up.

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.

The gold sector is 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 quickly.

Speculation has now dropped below the level of the previous bottom, which is an indicator of a potential new bottom forming.

Gold stocks, as measured by the HUI Gold Bugs Index, are testing resistance.

Silver is on a long-term buy signal.

The largest silver fund, the iShares Silver Trust ETF (NYSE:SLV), is on a short-term buy signal, and short-term signals can last for days to weeks, more suitable for traders.

Summary
The gold sector is on a major buy signal from a long-term perspective. The cycle is up. Short-term gold is also on a buy signal, and it’s just looking for a trend-line support to establish and set up.

The SPDR Gold Trust ETF (NYSE:GLD) rose $0.19 (+0.17%) in premarket trading Tuesday. Year-to-date, the largest ETF tied to gold prices has gained 2.79%, versus a 1.31% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #2 of 29 ETFs in the Precious Metals ETFs category.

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

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