Gold makes a break for freedom - targeting new higher high
Gold makes a break for freedom - targeting new higher high
The past few weeks resulted in some consolidation in the upward momentum of the gold price. You might remember from a previous post that we should watch out for a powerful upward move, resulting in gold making a new higher high.
- https://steemit.com/steemsilvergold/@unclehermit/gold-bounces-back-after-small-correction
and - https://steemit.com/steemsilvergold/@unclehermit/precious-metals-smashed-again-but-watch-for-the-bounce
The consolidation of the last couple of weeks had me somewhat concerned that a major correction was about to occur. It's still on the cards, but as the UK market opened this morning we are seeing another assault on the 1360 level. Once this is broken decisively we are likely to continue the move up to near 1400 before a significant correction. If the uptrend is confirm I am hopeful that the correction will be less damaging than previous corrections, looking at the chart I would estimate in the region of 1320. This will probably be the last low buying opportunity that buyers on the sidelines will have before the price moves above 1400, on it's way much higher.
Notwithstanding a damaging smash when the US market opens, we are well on our way to a major move in precious metals. Having said that, recent price smashes have only resulted in curtailing the upward momentum and price has quickly recovered. It seems like those in control are in damage control mode.
Silver is still lagging, not helped by the Trump decision to put tarrifs on solar panel imports into the US. The chart is indecisive and seemingly we are in another long drawn out down consolidation, which is frustrating, but gold is the Daddy here. Once gold makes a decisive move, and the uptrend cannot be denied, silver has a lot of catching up to do.
I also mentioned previously that GLD might be the real indicator for price movement. In my last post it was looking like it was starting to break out on the weekly chart.
This breakout of the 2011 down trend is now decisive on the weekly chart as you can see here:
Followed, voted and resteemed!
Sell at the end of February?
It depends on the chart action, if we spike up to around 1390 or so in gold I will consider selling 10% of my mining assets (if they have caught up) with the intention of buying back in on any correction. At the moment though the miners are lagging, so I might just hold through the correction. At some point miners have to recognise the move in gold and the likes of GDX, GDXJ, HUI should move aggressively upwards.