Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Investing in Crypto Currencies With Both Eyes WIDE OPEN! - 25th Oct 21
Is Bitcoin a Better Inflation Hedge Than Gold? - 25th Oct 21
S&P 500 Stirs the Gold Pot - 25th Oct 21
Stock Market Against Bond Market Odds - 25th Oct 21
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Still Looking Good

Commodities / Gold and Silver 2014 Jul 29, 2014 - 04:05 PM GMT

By: Aden_Forecast

Commodities

No sooner had gold taken a back seat to the soaring stock market, when it did an about face!

Tensions in the Middle East and Ukraine pushed gold up. The Fed then fueled the rise by again affirming a low interest rate policy. But a firmer dollar and better economic news then put downward pressure on the metals again.


We've felt that 2014 could end up being the turnaround year, from a bear market to a bull market. And that a bull market ascent could develop in 2015.

This is still a likely scenario.

The metals all rose in this direction this past month. Gold, silver, palladium, platinum and copper all rose above their 65 week moving averages (see Chart 1).

This is a great first step!

For the first time in 18 months this moving average has been surpassed. And it's happening during a roaring bull market in stocks and a solid rise in bonds.

Palladium has been bullish all along and it's been by far the best precious metal. Palladium recently reached its 2000 highs.

Granted, palladium got a boost from the Ukraine-Russia tension, and during the long mining strike in South Africa because they're the world's two largest palladium producers.

But the auto industry is bubbling, which is also bullish. U.S. auto sales are headed for their biggest year since 2007 and China is similar. Palladium is used in the automotive sector for pollution control devices, and there's a shortage. Plus, palladium is about 15 times more rare than platinum.

Palladium continues to be a good investment.

Gold Shares: Leading

Gold mergers and acquisitions have been revived this year, after falling to the lowest level in 10 years in 2013 as companies struggled with the drop in gold.

This is not surprising. This sector has been in bad shape.

Interestingly, worst hit were the junior shares. And now these shares have been leading the rise.

Junior mines fell 80% from 2011 to 2013, the worst fall since the 2008 crash. But since juniors are higher risk than seniors, it makes them a good leading indicator when they begin to outperform.

Gold shares have now also risen above their 65 week moving average, as you can see on Chart 2.

HUI Gold Shares Index

Gold shares fell to their lows last December. They were totally bombed out, and that low ended up becoming the head formation of a head and shoulders bottom.

We've been showing this bottom formation for quite a while, probably to the point where you wondered if it would ever finish!

Gold Shares Rising more than Gold

Well, it's starting to now. With the HUI index currently above its 65 week moving average, and near the neckline of the H&S bottom, it shows that a bottom is likely in.

That is, if the HUI gold shares index can now stay above 234, it will be off and running!

Gold shares are a good buy

Gold shares have been rising more than gold during the past month. When gold shares are better it's saying, risk is worth it because they're more speculative than gold itself.

Note on Chart 3 how HUI is just starting to rise more than gold. The ratio is rising from a bombed out area.

Interestingly, this ratio tends to form a major low every 5½ years, and in each case, gold shares rise more than gold for several years.

With its leading indicator (B) now breaking clearly above an over 4 year downtrend, it's showing gold shares have the potential to rise much more than gold this year and next. This coincides with the 5½ year pattern!

We recommend buying and keeping the shares, as well as the metals.

By Mary Anne & Pamela Aden

www.adenforecast.com

Mary Anne & Pamela Aden are well known analysts and editors of The Aden Forecast, a market newsletter providing specific forecasts and recommendations on gold, stocks, interest rates and the other major markets. For more information, go to www.adenforecast.com

Aden_Forecast Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

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