Gold, Silver, and Miners Break Away

ilver and the miners are all breaking out with force. This would imply (hyper)inflation is being priced in (because of the EU bailout package). The miners have some catching up to do ...

Gold Miners Leading Gold - Pointing to Higher Prices

On the open GLD and GDX gapped down. GLD did recover some but still closed down, while GDX reversed and closed higher.

Be on alert ... tomorrow will be a key day

Bullish on Gold

• GLD is still clearly in an uptrend.
• MACD histogram slope is still positive
• Force index 13 EMA is positive and at support
• ADX is still indicating that the uptrend is still intact

• GLD completed reverse HSH pattern and is currently performing a backtest
• On 04-16-2010 SEC brought fraud charges against Goldman Sachs - causing the financial markets to tumble. You would expect Gold prices to rise on safe haven buying, however, the opposite occurred. Gold prices fell nearly 30 points in a heart beat but found support in the 1130 region
• Goldman Sachs Fraud - Hard to see how Goldman's difficulties lead to gold weakness

• GLD will run into GAP and overhead cloud resistance. The GAP will be key here.
• The short term outlook is negative because Gold needs to shake off the smackdown and fight back here through GAP. 

• The GDX:GLD ratio slope is rising - which is bullish for Gold