Some Positive Gold Market Charts

January 14, 2020
Technical Analyst, Precious Metal Investor & Author

A good place to start is at the seasonal tendencies for gold.  There are seasons when gold drops in price, simply due to a lack of interest on the part of investors, and there are times when there is a seasonal tendency for investors to flock into the gold market. 

This chart courtesy goldchartsrus.com shows January is historically the best month for owning gold and gold products, such as mining stocks.  The Christmas rally usually lasts into February before producing a seasonal top.

All other charts in this essay are courtesy Stockcharts.com.  Featured is the daily bar chart for gold.  Price is rising inside the blue channel.  The supporting indicators are positive.  The horizontal green arrow points to a level of previous resistance that appears to be ready to offer support.  A close above the blue arrow will confirm that a new uptrend is getting underway.

Featured is a chart that compares gold mining stocks (GDX), to gold bullion  (GLD).  In a gold bull market, we expect GDX to outperform GLD (as now).  Quite often, when price touches the rising 200DMA (red line), while the CCI   (Commodity Channel Index), drops to -100, (bottom of chart), we are presented with a buying opportunity – see the blue arrows.  Our subscribers benefit from this type of in-depth analysis.  Notice also that the moving averages are in positive alignment, and rising!

Featured is a chart that compares the mining stocks of the HUI index to the S&P500 index.  While investors have been mesmerized by the constant rising of the S&P and DOW, it turns out that mining stocks have done even better, as can be seen clearly by the action inside the blue channel.  The supporting indicators at top and bottom are positive, along with the rising 200 day moving average (solid blue line).  The vertical green arrow hints at the start of another rally.  Got Gold?

Featured is SIL the silver producers ETF.  Price has been advancing since breaking out in June, above the moving averages.  The green arrow points to a 'bull cross'.  A close above the blue arrow will indicate that a new rally is about to get underway.  Silver and silver producers are expected to benefit from a California law that mandates all new homes and any renovated homes,  must have solar panels incorporated into the roof, as of Jan 1st this year.  It is expected that other states will follow along.  Solar panels will require a lot of silver, and because used solar panels are not easily recycled, most of them will end up in landfill in years to come – including the silver that was used in the manufacturing process.  

Featured is the US dollar index.  Price is declining inside the brown channel.  The supporting indicators are negative.  The brown arrow points to a 'bear cross'.  A close below the blue arrow will send price looking for support at the bottom of the channel.  A declining dollar will be of benefit to gold and silver. 

DISCLAIMER:  Peter Degraaf is NOT responsible for your trading decisions.  Peter Degraaf is an investor with more than 50 years experience.  Google him, or visit www.pdegraaf.com

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Peter Degraaf became interested in silver and gold when the Governments of the US and Canada proceeded to remove silver coinage from circulation in the mid 1960s.

He noticed the effect of Gresham’s law:  “Bad money drives out good.” He became a coin dealer, attending coin shows all over The US and Canada. In 2001 he semi-retired from coin sales and concentrated on investing in precious metals. He mastered the art of technical analysis and applies this to his investments. In 2001 he started publishing a daily and weekly market report.  His website is at http://www.pdegraaf.com/.

The first use of gold as money occurred around 700 B.C., when Lydian merchants (western Turkey) produced the first coins

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