Long-Term Outlook For Gold Remains Very Positive (GLD)

gold coins

From Streetwise Reports: Technical analyst Jack Chan charts the latest moves in the gold and silver markets, which he says are still exhibiting long-term buy signals despite flat performance as of late.

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Our proprietary cycle indicator is down.

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The gold sector is on a long-term buy signal, however. Long-term signals can last for months and years and are more suitable for investors holding for long term.

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In contrast, the gold sector is on a short-term sell signal. Short-term signals can last for days and weeks, and are more suitable for traders that are nimble to get in and out of positions quickly. It’s important to note that investors can be tactically bearish but long-term bullish.

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Looking at long-term historical data, we find that speculation favors overall higher gold prices.

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A recent pullback on the U.S. dollar is supportive for the metals, although the dollar has rallied significantly off its yearly lows.

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Silver is on a long-term buy signal.

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SLV is also on a short-term buy signal. Short-term signals can last for days to weeks, and again are more suitable for traders.

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A look at speculation levels favors overall higher silver prices.

Summary

Overall, the precious metals sector is on major buy signal. The cycle is down, however, as consolidation continues. COT data is supportive for overall higher metal prices. We are holding gold-related ETFs for long-term gain.

Jack ChanĀ is the editor of simply profits atĀ www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011.

The SPDR Gold Trust ETF (GLD) fell $0.41 (-0.34%) in premarket trading Tuesday. Year-to-date, GLD has gained 10.67%, versus a 16.64% 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 #6 of 35 ETFs in the Precious Metals ETFs category.


This article is brought to you courtesy of Streetwise Reports.