Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

The Gold Mining Sector Could Reach All-Time Highs Next Year

The Gold Mining Sector Could Reach All-Time Highs Next Year

The gold miners as represented by the GDX continue to consolidate within a relatively narrow range just below the largest volume-by-price bar of the year:

The correction of the last couple of months against the backdrop of a powerful rally during the first 7 months of the year has created a situation in which the falling 50-day moving average is on its way to converge with the rising 200-day moving average. The falling 50-day moving average also happens to line up with important support/resistance and the largest volume-by-price bar of 2016 near ~$26 (horizontal red line). Meanwhile the rising 200-day moving average is currently just above important support near $23 (horizontal green line). As the two most widely used moving averages continue to converge we can expect a resolution to the recent range to occur any day now.

To see charts and continue reading please click link http://energyandgold.com/2016/10/25/the-gold-mining-sector-could-reach-all-time-highs-next-year/