Friday, October 2, 2015
Does gold go on a bit of a tear now?
Gold popped on jobs numbers, for little reason, and GDX seems finally to be following:
And wow, these charts look interesting, at least in that GLD failed to make a lower low these past few months, and GDX also failed to make a lower low these past few months.
There was no lower high either, which meant there was constant selling pressure (in case the surge in volume since July isn't obvious to you).
So does Wall Street Whitey suddenly have to reverse his position on gold? I mean, now that China is reporting central bank gold purchases every month, and the Chinese are still importing gold via Hong Kong, and Indians are still buying gold for wedding season?
GDX's chart looks to me like it'll have to make an attempt at a higher high soon, because otherwise its chart needs to break down and collapse. It's the ugly kind of chart that should break down and collapse. And GDX has no reason to break down now that Whitey's cleaned out his cupboards, should it? I mean, what with impending economic doom and all, right?
This'll be interesting to watch for a few days, anyway. Keep your fingers crossed, goldbugs: you might be able to make some serious coin before Xmas.
And if you do, Wall Street Whitey is going to look at you all jealous given his own losses this year in US equities, and then he might decide to start buying back the miners that he's only just finished dumping.