Toby Connor: Gold (NYSEARCA:GLD) has now confirmed that an intermediate bottom was set on September 26. The double bottom at $1600 is a powerful basing pattern that should generate a test of the $2000 level by sometime in December.
For reasons covered in the nightly reports I don’t really expect gold (NYSEARCA:IAU) to push much above the $2000 level during this particular intermediate cycle.
Also for reasons discussed in the nightly reports I think the mining stocks (NYSEARCA:GDX), which have been unloved for the last year, are probably going to be the recipients of most of the hot money during this intermediate cycle. Both silver (NYSEARCA:SLV) and gold have already generated parabolic, or semi parabolic moves. I think it’s time for a big rally in the mining stocks (NYSEARCA:GDXJ) over the next four or five months.
Toby Connor is the author of Gold Scents, a financial blog with a special emphasis on the gold secular bull market. Mr. Connor’s analysis skill of the markets is largely self-taught, though he admits to being an avid reader of Richard Russell and Jim Rogers, among several others.