Gold Still Weak In The Short Term, But Longer Bull Market Persists
From The Gold Report: Technical analyst Jack Chan charts the latest moves in the gold and silver markets, which includes more short-term weakness but an intact long-term bull market.
Our proprietary cycle indicator is down.
The gold sector, as measured by the Gold Bugs Index (HUI) is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for the long term.
The gold sector is on a short-term sell signal, however. Short-term signals can last for days and weeks, and are more suitable for traders who are nimble enough to get in and out of positions relatively quickly.
Speculation has now dropped below level of previous bottom, which could be a sign for prices to turn back up.
The trend for gold miners, measured by the GDX, remains down.
Silver is on a long-term buy signal, despite its steep sell-off in the second half of the year.
Silver’s top ETF, SLV, is on a short-term sell signal, and short-term signals can last for days to weeks, more suitable for traders.
Summary
The gold sector is on a major long-term buy signal. The cycle is down, and the trend is down, however. The second-half correction continues, so caution is advised until we see a firm bottom forming.
The SPDR Gold Trust (ETF) (NYSE:GLD) was trading at $108.33 per share on Tuesday afternoon, up $0.4 (+0.37%). Year-to-date, GLD has gained 6.77%, versus a 12.18% rise in the benchmark S&P 500 index during the same period.
GLD currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #1 of 29 ETFs in the Precious Metals ETFs category.
This article is brought to you courtesy of The Gold Report.
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