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What a difference 30-months can make! 30-Months ago the Power of the Pattern shared that Gold could be flat to down for years to come (see post here) Its not been too pretty for metals since that time frame, as Gold has lost one third of its value.
The decline in Gold & Silver has helped pushed the Gold/Silver mining index (XAU) momentum indicator to levels not seen in 30-years at (1) above. Todd Shriber of ETF Trends writes this morning, this could be a “Generational Opportunity in the miners” index. (See article here)
The decline in the XAU index has pushed it to a level that has been key support/resistance several times over the past 10-years.
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Three weeks DOES NOT make a trend! The chart above reflects that a few of 2013’s hardest hit sectors are off to a good start in 2014, with GDX up almost 7% on the year.
Joe Friday– Gold Miners haven’t seen this situation in a long time. Usually a good entry point, with a stop below support.
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