Loading ...Gold, Silver, Platinum Should Keep on Shining
Though precious metal skeptics are hardly in short supply, the metals and mining stocks have clearly bottomed.
By
Michael Kahn
January 20, 2015
With no inflation in sight and the U.S. dollar still soaring, there is no real fundamental reason for gold and silver to move higher. Yet, that is exactly what they have been doing. And mining stocks are doing even better.
Markets trapped in relentless bear markets make many attempts to change their fortunes, and the charts are littered with false breakouts and shamed bulls. But when bearishness is the norm, especially after what appears to be yet another breakdown on the charts, a real reversal can develop. That is what looks to have happened last October.
On a weekly chart, the failed support break and intraweek reversal are clear (see Chart 1). Of course, in hindsight everything is clear, but as I wrote here in November, gold scored a short-term turnaround that could send it back to its 200-day moving average (see Getting Technical,”Gold: It’s Time to Buy,”November, 19, 2014).
http://online.barrons.com/articles/gold-silver-platinum-should-keep-on-shining-1421791737