Loading ...There comes a time, after you watch the precious metals meander slowly upward, when suddenly there is a burst of energy that propels them rapidly higher. On Friday we watched the entire precious metals complex react positively to a bout of weakness in the US dollar index.
Charts are courtesy Stockcharts.com unless indicated.
This chart features GLD, a gold ETF. The number ‘4’ alerts us to the latest upside breakout. If history repeats, we can expect a rise very similar to the three preceding breakouts. The supporting indicators are positive with room to rise. The 50DMA (blue line) has just completed a ‘bullish crossover’ with the 200DMA (red line). This usually motivates many investors to get ‘on board’.