A New Intermediate Cycle Confirmed In Gold (GLD, IAU, GDX, GDXJ, SLV)

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.

Written By Toby Connor From Gold Scents

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.

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