This Chart Indicates A Major New Gold Bull Market Is In Progress

Technical analyst Gary Savage in his chart of the day points out a big technical hurdle that gold prices just overcame, and looks ahead to what’s next for the yellow metal.

Gold has tagged the 38% Fibonacci retracement of the previous intermediate cycle. This is the most likely spot for gold to drop into a half cycle low if it’s going to produce one. Dips are buying opportunities in the advancing phase of an intermediate cycle.

38% fib

As you can see in the chart above, gold prices are actually remaining at overbought levels. That’s a classic sign that an intermediate advance is in progress.

Any dips to oversold shouldn’t last long, and prices should bounce back again rather quickly. So price should spend long periods of time in overbought conditions, and very short periods of time in oversold.

The SPDR Gold Trust ETF (NYSE:GLD) — which is the easiest way for investors to bet on rising gold prices — was trading at $115.79 per share on Wednesday morning, down $0.06 (-0.05%). Year-to-date, GLD has gained 5.64%, versus a 1.28% 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.

This article is brought to you courtesy of Smart Money Tracker.

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