Gold, Silver Both Testing Decade-Long Technical Support (GLD)

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July 15, 2017 7:07am NYSE:GLD

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From Chris Kimble: Below compares the performance of Gold, Silver and the S&P 500 since July of 2001. Why compare the performance of the three starting in 2001? This is when Gold & Silver created a series of higher lows, starting a new bull market that lasted the following decade.


From 2001 until 2011, Gold & Silver both outperformed the S&P 500 by more than 500% each! 

No doubt it paid to own Gold & Silver over the S&P 500 from 2001 to 2011. As we all know at this time, the performance between the three has done the exact opposite over the past 6-years, as it has paid to own the S&P and avoid Gold & Silver.  Is in now time to consider that Gold & Silver could be ending the 6-year bear market in metals?

Below looks at only Gold & Silver since the late 1990’s and why the price point in Gold & Silver are testing what could be historically important levels.

The above chart reflects that Gold & Silver on a monthly basis are both testing 16-year rising support at this time. Despite Gold & Silver being lower over the past 6-years, this reflects that both are in long-term rising trends, where support is being tested.

Joe Friday Just The Facts: Support is Support until broken and both are testing long-term support at this time. What both do at this support test should send very important long-term messages about the metals space and will lead to wonderful opportunities.

The SPDR Gold Trust ETF (NYSE:GLD) closed at $116.77 on Friday, up $0.95 (+0.82%). Year-to-date, GLD has gained 6.53%, versus a 9.86% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #3 of 35 ETFs in the Precious Metals ETFs category.


If you would like to receive Power of the Pattern charts in the metals sector, you can receive them by being a Premium or Metals member.

This article is brought to you courtesy of Kimble Charting Solutions.


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