Quoted In Barron's
“The world is navigating troubled waters,” observed Jeb Handwerger, editor of Gold Stock Trades. “What we … witnessed the day after the rally (yesterday’s session) was a technical day of rest before the upward move of the DJIA and the S&P 500 resumes their upward trends.”
At its current pace today, GLD’s headed to a 3%-plus weekly gain. Likewise, SLV’s working on a better-than 4% advance for the week.
But consider the small-cap focused Market Vectors Junior Gold Miners ETF(GDXJ). At last check, it was falling by 0.5% on Friday. Still, it’s looking at around a 10% gain on the week. By contrast, the large-cap dominated Market Vectors Gold Miners ETF (GDX), which was falling 2.7% on the day, was moving towards more than a 5% weekly uptick. The Global X Silver Miners ETF (SIL) was trading down 0.9% this morning, but still looking at a better-than 9% advance on the week.
In futures markets, gold for February delivery — the most actively traded contract — was trading up by $14.20 to $1,754 an ounce. Silver for March delivery on the Comex was up 54 cents at $33.30 an ounce.
“Gold bullion appears to be forming a bullish symmetrical triangle (technical pattern) on the verge of breaking out to the upside,” Handwerger told clients today. “After 12-weeks of consolidation, a move above the descending resistance line on strong volume could indicate a potential upswing to the $2150 (an ounce) area.”
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