It is happening. Gold stocks are starting to go up again. Last week they pulled back a bit after having a massive rally in April and May to scare some people on the dip. The GDX gold stock ETF hit its 50-day moving average and bottomed. It is still in a consolidation period with resistance at $37.00, but it has formed a new bottom off of the 50-day moving average.
And then yesterday it all begin to rally again.
I fully believe the gold crash callers are wrong. If they were right the GDX would not be going up like this. We saw my top mining stock for this month pop last week. It’s still in position now though in my view.
One thing that worried people about gold is last week’s employment numbers. The headlines came in as a surprise to cause many to believe those that say we are now on the cusp of a “V bottom” economic boom, but yesterday the Federal Reserve announced that they expect to keep interest rates at zero for years with no rate hike foreseeable with nothing but an economic “bounce” coming for the next 18 months. An easy money Fed simply means gold is destined to continue higher.
Yesterday in a podcast with David Skarica I talked about this top stock for June and the markets in general. If you missed it watch it by clicking here.
-Mike
