Are The Chinese Selling Dollars To Buy Gold?
https://www.zerohedge.com/markets/are-c ... s-buy-gold
The shorter-term moving averages have crossed the 50-day MA (blue line). This is a bullish formation.
Similar action this time would have gold trading near $2,100 per ounce well before Christmas.
And, if gold is headed to $2,100, then the gold stocks are set up for a huge rally.
The gold stocks are trading roughly 10% to 20% below where they were trading the previous times gold challenged the $2,000 level.
Either gold needs to decline to match the price of the gold stocks, or the gold stocks need to rally and catch up to the price of gold.
My bet is the gold stocks are set to play catch-up.
We’re entering a seasonally bullish time of the year for gold stocks.
That breakout would be a 20% rally from Wednesday’s closing price. And it could happen before the next FOMC meeting on December 13.
The bullish conditions for gold we looked at earlier this week are still in place. And now, with the FOMC meeting out of the way, gold stocks can resume their rally. The sector could be sharply higher just one month from now.
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