Wow! I haven’t seen this kind of movement in a few months. Gold is one of the B12 Trader markets that I follow. I like to watch XAU/USD (Spot Gold) GLD and JNUG. Take a look at the charts of Gold and JNUG. JNUG moved 75% in the last 3 days! I’m imagining there will be some profit taking tomorrow before continued movement upwards. This could be the bottom we’ve been expecting.
Russia is grabbing as much gold as it can to try and hedge against their free falling currency. Other countries throughout Europe and Asia are hauling in their inventories and limiting it’s sale. This is creating huge potential demand for gold and it’s showing on the charts!
Look at this chart of GOLD. A strong bounce from it’s long term down trend line, a hard break out of it’s intermediate down trend and sitting comfortably above the 20-day EMA. The real test will be if it can break the $1220 – 1225 trend line, either way, there is money to made in what appears at least to be a short term uptrend.
Now if we compare this to the leveraged ETF JNUG (Direxion Junior Gold Minors) we can see a slightly different pattern, but still a substantial movement breaking out of a sideways correction after a long down trend. Any major close below $4.85 could mean this is just a fake out, but if it holds, it may be time to play!