Featured is the daily gold chart. The circles draw our attention to the fact that the last two dips in the price of gold were not confirmed by the three supporting indicators. This is bullish.

The overall uptrend channel was never really violated (red and green dashed lines).

Featured is the GDX electronic gold unit. The upside reversal (green arrow) that ended trading on Wednesday is bullish, coming as it did right near the 8 month old support zone. All three of the supporting indicators (blue dashed lines) also remained positive during the past month.

Featured is the index that compares the XAU mining index to the gold price. Generally speaking, when this index is rising, it is a bullish signal for gold and gold stocks. The index has been in ‘uptrend' since March. Wednesday's ‘outside reversal' (green arrow), is another bullish sign, another ‘bell being rung'! The three supporting indicators are positive.

Featured is a long-term chart that compares gold to oil. The 19 year mid-point is 15 barrels of oil pays for one ounce of gold. Today it only takes 9.35 barrels. GOLD IS A BARGAIN COMPARED TO OIL! (And the trend is up!)

Summary:
Gold bells are ringing again. Its time to cover shorts and go long. The COT report due out Friday is expected to be very bullish.

Silver is suffering from ‘chart damage' that occurred on Wednesday, but silver will be pulled along by strength in gold.

Oil is supported by the massing of sea power in the Persian Gulf (currently three carrier forces, with a fourth on the way).

By Peter Degraaf.

Peter Degraaf is an online stock trader with over 50 years of metals trading experience. He sends out a weekly E-mail to his many subscribers. For a 60 day free trial, contact him at ITISWELL@COGECO.CA

DISCLAIMER: Please do your own due diligence. I am NOT responsible for your trading decisions.

Peter Degraaf Archive

Comments

30 Jun 07, 04:07

Gold $600

I agree, gold will hit 600 in short !!!!

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.